On January 1, 2020, Portal Corporation acquired 90% of Squaredeal Company's voting stock for $62,000 in cash and stock. The noncontrolling interest in Squaredeal had a fair value of $5,000. The entire excess of fair value over book value was attributable to goodwill, which is not impaired in 2020. It is now December 31, 2020, and Squaredeal's trial balance is as follows:

Squaredeal's trial balance, December 31, 2020	Dr (Cr)
Current assets	$ 3,000
Plant assets, net	97,000
Liabilities	(59,000)
Capital stock	(12,700)
Retained earnings, beginning	(25,300)
Dividends	1,000
Sales revenue	(280,000)
Cost of sales and operating expenses	276,000
Total	$ 0

Portal uses the complete equity method to report its investment in Squaredeal on its own books.

1. On the 2020 consolidation working paper, eliminating entry (E) credits the noncontrolling interest in Squaredeal by:

Select one:

A. $1,270

B. $2,530

C. $3,800

D. $3,840

2. On the 2020 consolidation working paper, eliminating entry (R) recognizes goodwill in the amount of:

Select one:

A. $33,000

B. $29,000

C. $27,800

D. $41,700

Answer rating: 100% (QA)

1 c 3800 workings Calculation of Non controlling holders share inSquaredeals a 10 o... View the full answer