1: TRUE OR FALSE, explain why 1. The basis for consolidation is power. 2. Entity A acquired Entity B on November 1, 20x1. The 20x1 consolidated profit should include Entity B's profit from January 1 to December 31, 20x1 - it is as if control had existed for the entire year. 3. Goodwill is remeasured to fair value at each reporting date. Use the following information for the next two items: Entity A acquired 90% interest in Entity B on January 1, 20x1 when Entity B's net assets had a fair value of 100. NCI was measured at 'proportionate share'. By December 31, 20x2, Entity B's net assets increased to $200 after adjustments for acquisition- date fair values, net of depreciation. 4. The NCI on December 31, 20x2 is P20. 5. Before consolidation, Entity A's retained earnings balance is P1,000. The consolidated retained earnings is 1,090. 6. NCI in the net assets of a subsidiary is presented in the consolidated financial statements as a mezzanine item. 7. Goodwill is attributed to both the owners of the parent and non-controlling interest only if the latter is measured at fair value. 8. The amount of goodwill attributed to non-controlling interest (NCI) is included in the measurement of NCI in the subsidiary's net assets. Use the following information for the next two items: Day Co. owns 80% of Night Co. Day and Night reported profits of $200 and $100, respectively, in 20x1. There is no depreciation of fair value adjustment. 9. The consolidated profit is P300