ASAP

Question 1 25 points Save Answer On December 2015, Gold acquires Silver by purchasing 70% of its equity for USD 210.000 in cash. The fair value of Non-Controlling Interest (NCI) is determined to be USD 50.000 at the date of acquisition. Book value of Silver's Net asset is CU300.000 at the date of acquistion. The fair value of the identifiable assets and liabilities are as follows: Fair Value Silver CU Assets Current Assets Property Plant Equipment Current Liabilities Debt 350.000 100.000 50.000 150.000 In addition; Silver had the following intangible assets on the acquisition date (not included in Silver's balance sheet): a. Trademarks: Have values of CU 10.000. The useful life of these trademarks are indefinite. b. Ongoing research projects of that have an estimated value of CU7.500. c. Internally developed patents with a value of CU3.500. For the purposes of this example, the tax consequences have been ignored. 1. Make Gold's journal entry to record the acquisition of Silver by considering NCI "Measured at proportionate share of the acquiree's identifiable net assets". 2. Make Gold's journal entry to record the acquisition of Silver by considering NCI "Measured at FV". 3. Critically discuss the effects of the different accounting treatment fro NCI on Gold's Balance Sheet