
a.
Explain the way in which the accountant determines that the parent has applied the initial value method.
b.
Find the annual excess amortization initially recognized in connection with this acquisition.
c.
Find the investment income which the parent would have recorded in 2018 if the parent had applied the equity method.
D
Find the amount which the parent should report as
e.
Find the consolidated net income for 2018 and what amounts are attributable to the controlling and non-controlling interests.
f.
Find the balance which is included for the subsidiary’s Buildings account.
g.
Find the consolidated Buildings reported balance as of December 31, 2018.

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Chapter 4 Solutions
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