c. The cost method 2. What is meant by date alignment? Does it exist on the consolidated worksheet und the following methods, and if not, how is it created prior to elimination o f the invest- ment account under each of these methods? a. The simple equity method b. The sophisticated equity method c. The cost method 3. What is the noncontrolling share of consolidated net income? Does it reflect adjust ments based on fair values at the purchase date? How has it been displayed in income statements in the past, and how should it be displayed? 4. A parent company acquired an 80% interest in a subsidiary on July 1, 2015, The sub- sidiary closed its books on that date. The subsidiary reported net income of $60,000 for 2015, earned evenly during the year. The parent's net income, exclusive of any income of the subsidiary, was $140,000. The fair value of the subsidiary exceeded book value by $100,000. The entire difference was attributed to a patent with a 10-year life. a. What is consolidated net income for 2015? b. What is the noncontrolling share of net income for 2015? 5. A parent company acquired an 80% interest in a subsidiary on January 1, 2015, at a price high enough to result in goodwill. Included in the assets of the subsidiary are inventory with a book value of $50,000 and a fair value of $55,000 and equipment with a book value of $100,000 and a fair value of $160,000. The equipment has a s raminine ife What impact would the inventorw and equipmentacquired in