On January 1, 2022, Pop Co. acquired 75% of the outstanding common shares of Soda Inc. for $161,250 cash. On that date, Soda had common shares of $156,250 and retained earnings of $31,250. At acquisition, the identifiable assets and liabilities of Soda had fair values that were equal to carrying amounts except for inventory, which had fair value $8,000 greater than carrying amount and plant and equipment, which had fair values $10,000 greater than carrying amounts. The plant and equipment had a remaining useful life of 5 years on January 1, 2022.Any goodwill will be tested yearly for mpairment. Balance sheets as of December 31, 2022 are presented below: Cash Accounts receivable Inventory Land Plant & Equipment, net Investment in Soda Inc. - equity Current liabilities Bonds payable Common shares Retained earnings Pop Co. Soda Inc. $ 10,000 $ 5,000 38,750 42,250 75,250 62,500 50,000 100,000 150,000 175,000 168,500 $492,500 $384,750 $ 45,500 - 338,000 109,000 $492,500 $ 47,125 128,125 156,250 53,250 $384,750 For 2022, Soda Inc. reported net income of $37,000 and paid dividends of $15,000. Pop Co. reported net income for 2022 of $50,000 and paid dividends of $25,000. An impairment test on goodwill conducted on December 31, 2022, indicated that a $500 loss had occurred. What was the amount of goodwill that arose on the acquisition of Soda's common shares on January 1, 2022?

On January 1, 2024, Flower Company purchased 100% of the common stock of Cornell Company for $380,000 cash. Fair values differed from book values as follows:     Fair value Inventory $45,000 Land  50,000 Buildings 200,000 Bonds Payable 95,000     The trial balances of the companies at the acquisition date are as follows:   Trial Balance   Parent Sub. Account Titles Company Company Assets:     Inventory 150,000 30,000 Cash 639,000 165,000 Investment in Sub. Company 380,000   Land 20,000 30,000 Buildings, net 250,000 180,000 Goodwill 40,000   Liabilities and Equity:     Current Liabilities 191,000 65,000 Bonds Payable 500,000 100,000 Common Stock 100,000 50,000 Other Paid-in Capital 150,000 70,000 Retained Earnings 538,000 120,000     Which of the following is not one of the eliminations and adjustments included on the consolidation worksheet…

On December 31, 2008, Mercury Corporation acquired 100% ownership of Saturn Corporation. On that date, Saturn reported assets and liabilities with book values of $300,000 and $100,000, respectively, common stock outstanding of $50,000, and retained earnings of $150,000. The book values and fair values of Saturn's assets and liabilities were same except land which had increased in value by $10,000 and inventories which had decreased by $5,000 Based on the preceding information, what amount of goodwill will be reported if the acquisition price was $240,000? Select one: a. 35,000 b. 40,000 c. 15,000 d. 0

On January 1, 2018, Panorama Company acquired 80% of Scann Corporation for $6,400,000.At the time of the acquisition, the book value of Scann's assets and liabilities was equal to the fair value except for equipment that was undervalued $80,000 with a four-year remaining useful life and inventories that were undervalued $20,000 and sold in 2018. Panorama separate net income in 2018 and 2019 was $1,100,000 and $1,150,000, respectively. Scann separate net income in 2018 and 2019 was $300,000 and $360,000, respectively. Dividend payments by Scann in 2018 and 2019 were $60,000 and $60,000, respectively   Required:  Using equity method,   Calculate Investment in Scann shown on Panorama's ledger at December 31, 2018 and 2019. Calculate Investment in Scann shown on the consolidated statements at December 31, 2018 and 2019. Calculate consolidated net income for 2018 and 2019. Calculate Noncontrolling interest balance on Panorama's ledger at December 31, 2018 and 2019. Calculate Noncontrolling…