Hi I need some help with my homework, please answer all 3 questions

2) One company acquires all of the stock of another company. According to US GAAP, what is the basis to be used for recording the assets and liabilities of the new subsidiary within consolidated financial statements?

A) The fair value of the consideration given up by the acquiring company.

B) The fair value of the shares obtained from the owners of the acquired company.

C) The book value of the assets and liabilities of the acquired company.

D) The fair value of the consideration given up by the acquiring company plus any

direct consolidation costs incurred by the acquiring company.

3) Big Company buys 100 percent of the outstanding shares of Little Company on January 1, Year One. Big paid an amount that was in excess of the underlying fair value of the subsidiary's assets and liabilities so that this was not viewed as a bargain purchase. On that date, Little had land worth $300,000 but with a book value of $200,000. Several years later, when Little still held this land as well as other parcels of land, Big reported a Land account of $900,000 and Little reported a Land account of $500,000. Assume no asset impairments have taken place. What is the consolidated balance to be reported for land?

A) $900,000

B) $1,200,000

C) $1,400,000

D) $1,500,000

4) Big Company buys all of the outstanding stock of Little Company on January 1, Year One by giving up consideration of $4.7 million. On that date, Little has identifiable assets and liabilities with a net book value of $4.0 million but a fair value of $5.0 million. According to US GAAP, which of the following statements is true?

Goodwill of $700,000 should be recognized and amortized over a period of up to 40

years.

Goodwill of $700,000 should be recognized but no subsequent amortization

should be recorded.

A Bargain purchase of $300,000 has occurred and will be used to reduce the values

assigned to Littles long-term assets for consolidation purposes.

A Bargain purchase of $300,000 has occurred and will be reported immediately for

consolidation purposes as a gain.