Reference no: EM133197564

On January 1 2021, Mrs. Potts paid $900,000 and acquired 90% of Chip which had a net book value of $425,000 on this date. Mrs. Potts prepares the acquisition fair value allocation and determines the fair value differences for specifically identified assets and liabilities totals $450,000, which will amortize over 10 years at the rate of $45,000 per year.. For the year ended December 31, 2021, Mrs. Potts paid dividends of $50,000. For the year ended December 31, 2021, Chip had net income of $350,000 and paid dividends of $15,000.

Question 1: The implied fair value of Chip at the date of acquisition is

Question 2: The amount recorded by Mrs. Potts in the 2021 equity method entry to record its earnings in Chip is

Question 3: The amount reported in Mrs. Potts 2021 consolidated income statement for the line Noncontrolling interest in net income is

Question 4: The amount reported in Mrs. Potts 2021 consolidated financial statements as Dividends is

Question 5: The amount reported in Mrs. Potts 2021 consolidated financial statements as Goodwill is