QUESTION 1 Use the following fact pattern for questions 1 through 2: Hueske Company purchased 80 percent of the stock of Blake Inc. on December 31, 2010, for $500,000. The equity section of Blake's balance sheet on that date was as follows: $150,000 Common Stock 100.000 Additional Paid-in Capital 250,000 Retained Earnings $500.000 Total Identifiable net assets of Blake had book values equal to market values except intangible assets which had a market value that was $40,000 in excess of book value and these assets had a remaining useful life of 5 years at the date of acquisition. In each of the years 2011 and 2012, Blake reported net income of $80,000 and dividends of $30.000. Based on the information above, what is the implied total fair market value of Blake on December 31, 2010? 1. $500.000 2.5500.000 3.5625.000 4. $1,000,000 5. None of the above Based on the information above the amount that should be reported as noncontrolling interest (minority interest) on the December 31, 2010 consolidated balance sheet prepared immediately following acquisition and under current GAAP is: 1.50 2. $150.000 3.5162.000 4. $125.000 5. None of the above