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Chapter 05 - Consolidation of Less-than-Wholly Owned Subsidiaries Chapter 05 Consolidation of Less-than-Wholly Owned Subsidiaries Multiple Choice Questions Bristle Corporation acquired 75 percent of Silver Corporation's common stock on December 31, 2008, for $300,000. The fair value of the noncontrolling interest at that date was determined to be $100,000. Silver's balance sheet immediately before the combination reflected the following balances: A careful review of the fair value of Silver's assets and liabilities indicated that inventory, land, and buildings and equipment (net) had fair values of $65,000, $100,000, and, $300,000 respectively. Goodwill is assigned proportionately to Bristle and the noncontrolling shareholders. 5-1 Chapter 05 - Consolidation of Less-than-Wholly Owned Subsidiaries 1. Based on the preceding information, what amount of inventory will be included in the consolidated balance sheet immediately following the acquisition? A. $0 B. $65,000 C. $70,000 D. $60,000 2. Based on the preceding information, what amount of land will be included in the consolidated balance sheet immediately following the acquisition? A. $0 B. $10,000 C. $90,000 D. $100,000 3. Based on the preceding information, what amount of buildings and equipment (net) will be included in the consolidated balance sheet immediately following the acquisition? A. $0 B. $50,000 C. $250,000 D. $300,000 4. Based on the preceding information, what amount of goodwill will be reported in the consolidated balance sheet immediately following the acquisition? A. $0 B. $120,000 C. $65,000 D. $20,000 5. Based on the preceding information, what amount will be reported as investment in Silver Corporation stock in the consolidated balance sheet immediately following the acquisition? A. $0 B. $210,000 C. $300,000 D. $400,000 5-2 Chapter 05 - Consolidation of Less-than-Wholly Owned Subsidiaries 6. Based on the preceding information, what amount will be reported as noncontrolling interest in the consolidated balance sheet immediately following the acquisition? ... View Full Document

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