MC$15$: Assigning goodwill to controlling and noncontrolling interests

Assume a parent company purchased less than $100\%$ of the voting common stock when it acquired a controlling interest in a subsidiary on August $15,2022.$ The parent uses the equity method to account for the subsidiary on its pre$-$consolidation books. Both companies have a December $31,2022$ fiscal year end. Which of the following statements is correct?

Group of answer choices

Noncontrolling interest reported in the consolidated balance sheet always equals the percentage of shares held by the noncontrolling shareholders multiplied by the pre$-$acquisition reported net assets of the subsidiary.

In the balance sheet prepared immediately after the acquisition, the parent company$$s pre$-$ consolidation retained earnings will always equal consolidated retained earnings

Consolidated net income for the year ended December $31,2022$ will include $100\%$ of the subsidiary$$s income for the entire year.

The amount of total assets reported in the consolidated balance sheet is usually less than total assets in the parent company$$s pre$-$consolidation balance sheet.