IFRS allows an alternative method for valuing the acquired subsidiary's goodwill. When is U.S. GAAP and IFRS valuation of goodwill the same regardless of which valuation method is used under IFRS?

	A.	There is no noncontrolling interest in the acquired subsidiary.
	B.	It is the date of acquisition.
	C.	There are no revaluations of the acquired subsidiary's identifiable net assets.
	D.	There is no goodwill impairment.

Porwal Parts acquires all the voting stock of Stonegate Supplies for $40 million. Stonegate's book value was $10 million at the date of acquisition. Stonegate's assets and liabilities are carried at amounts approximating fair value, but it has previously unrecognized brand names valued at $8,000,000. Consolidation eliminating entry (R), at the date of acquisition, includes a(n):

	A.	$32 million debit to goodwill
	B.	$8 million debit to identifiable intangible assets
	C.	$40 million credit to the investment account
	D.	$10 million debit to Stonegate's equity accounts

1. At the beginning of 2018, a parent sells a building with a book value of $1,000,000 to its subsidiary for $1,500,000. The building has a 10-year remaining life at the time of sale. Straight-line depreciation is used, with no residual value. At the beginning of 2021, the subsidiary sells the building to an outside company for $800,000. On the 2021 consolidation working paper, the unconfirmed intercompany gain on the building sale is recognized in the amount of:

   	A.	$100,000
   	B.	$500,000
   	C.	$400,000
   	D.	$350,000