(Solved): Questions 811 are based on the following infornation Patriet Corporation acquired 80 pertent exm ...

Questions $8?11$ are based on the following infornation Patriet Corporation acquired 80 pertent exmenhip of Seahawk Corporation on January $1.20\times 8$. for $\$200,000$. As that date, Seahawk reported common stock outstanding of $\$75,000$ and retained. earnings of $\$150,000$. The fair value of the nopcontrolling interest was $\$50,000$, The differential is assigned to equipment, which had a fair value $\$25,000$ greater than book value and a remaising economie fife of five years at the date of the business combination. Scahawk reported net income of $\$40,000$ and paid dividends of $\$20,000$ in $20\times 8$ 8. The basic consolidation entry includes a debit of: (a) $\mathrm{NCl}$ in $\mathrm{NI}$ of Seahawk Corporation of $\$32.000$ b) $\mathrm{NCI}$ in $\mathrm{NI}$ of Seahawk Corporation of $\$8,000$ c) $\mathrm{NCl}$ in NA of Seahawk Corporation of $\$49,000$ d) $\mathrm{NCl}$ in $\mathrm{NA}$ of Seahawk Corporation of $\$196,000$ e) Investment in Seahawk Corporation of $\$196,000$ 9. The equity-method entry on the parent's book related to the amortization of the excess value includes: a) A debit of investment in Seahawk Corporation 5,000 b) A credit of investment in Seahawk Corporation 5,000 c) A debit of investment in Seahawk Corporation 4,000 d) A credit of investment in Seahawk Corporation 4,000 e) A credit of income from Seahawk Corporation of 1,000 10. For consolidation, the excess value reclassification entry includes: a) A debit of $\mathrm{NCI}$ in NI of Seahawk Corporation 4,000 b) A debit of NCI in NI of Seahawk Corporation of 1,000 c) A credit of NCI in NI of Seahawk Corporation of 4,000 d) A credit of NCI in NI of Seahawk Corporation of 1,000 c) A debit of equipment of 20,000 11. For consolidation, the amortized excess value reclassification entry includes: a) A credit of depreciation expense 5,000 b) A debit of Income from Seahawk Corporation of 1,000 c) A debit of Income from Seahawk Corporation of 4,000 d) A credit of Income from Seahawk Corporation of 4,000 e) A credit of Income from Seahawk Corporation of 1,000