Questions 16 and 17 relate to the following facts. P buys a 90% interest in S on
ID: 2597759 • Letter: Q
Question
Questions 16 and 17 relate to the following facts. P buys a 90% interest in S on January 1, for $110 million. As of that date, the fai 2016 As of the acquisition date, the book value of s $70 million. S also owns a trademark, which has zero book value, but has a fair value of s30 million. 16.- -As of the date of acquisition, how much of the value of the trademark is considered allocable to the noncontrolling interest? a. Zero b. $3 million c. $27 million d. $30 million 17.As of the date of acquisition, how much of the goodwill is allocable to the noncontrolling interest? a. Zero b. $2 million c. $10 million d. $12 million 18. True/False. Noncontrolling interest is shown as a liability on the consolidated financial statements. 19. True/False. The noncontrolling interest's share of income from the subsidiary is shown as an expense on the consolidated financial statements.Explanation / Answer
16) option (D) $30Million
17) Option (C) $10million
110 - 70 - 30 = 10
18) True
19) False
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