Accounting for Business Combination Final Exam PDF

lOMoARcPSD|45617902 Accounting for Business Combination - Final Examination Accountancy (Central Luzon State University) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university D...

lOMoARcPSD|45617902 Accounting for Business Combination - Final Examination Accountancy (Central Luzon State University) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university Downloaded by Luan ([email protected])  lOMoARcPSD|45617902 Accounting for Business Combinations Final Exxamination 2 Semester 2020 - 2021 nd 1. The method required under PFRS 3 to be used in accounting for business combinations is a. Purchase method c. Acquisition method b. Buy method d. Combination method 2. Are the following statements about an acquisition true or false, according to PFRS 3 Business combinations? I. The acquirer should recognize the acquiree's contingent liabilities if certain conditions are met. II. The acquirer should recognize the acquiree's contingent assets if certain conditions are met. a. False, False b. False, True c. True, False d. True, True 3. This type of business combination occurs when, for example, a private entity decides to have itself “acquired” by a smaller public entity in order to obtain a stock exchange listing. a. Step acquisition c. Reverse acquisition b. Rewind acquisition d. Stock acquisition 4. In a business combination, an acquirer's interest in the fair value of the net assets acquired exceeds the consideration transferred in the combination. Under PFRS 3 Business Combinations, the acquirer should a. Recognize the excess immediately in profit or loss. b. Recognize the excess immediately in other comprehensive income. c. Reassess the recognition and measurement of the net assets acquired and the consideration transferred, then recognize any excess immediately in profit or loss. d. Reassess the recognition and measurement of the net assets acquired and the consideration transferred, then recognize any excess immediately in other comprehensive income. 5. A British parent entity uses the revaluation model to measure its property, but a Philippine subsidiary uses the cost model. The Philippine subsidiary’s directors find the revaluation model too costly to implement. In the consolidated financial statements, is the group allowed to measure the Philippine subsidiary’s property under the cost model? a. Yes, the British parent’s property shall be adjusted to conform to the subsidiary’s accounting policy of cost model. Downloaded by Luan ([email protected])  lOMoARcPSD|45617902 b. No, the Philippine subsidiary’s property shall be adjusted to conform to the group’s accounting policy of revaluation model. c. Yes, both models will be reflected in the consolidated financial statements, but this fact must be disclosed in the notes. d. None of these, the property is eliminated in the consolidated financial statements 6. When consolidating the financial statements of a parent and its subsidiary, which of the following is eliminated? a. Goodwill b. NCI in net assets c. Investment in subsidiary d. All of these 7. This type of business combination occurs when, for example, a private entity decides to have itself “acquired” by a smaller public entity in order to obtain a stock exchange listing. a. Reverse acquisition b. Rewind acquisition c. Step acquisition d. Stock acquisition 8. In a business combination, which of the following will occur? a. All identifiable assets and liabilities are recorded at fair value at the date of acquisition. b. All identifiable assets and liabilities are recorded at book value at the date of acquisition. c. Goodwill is recorded if the fair value of the net assets acquired exceeds the book value of the net assets acquired. d. None of the above is correct. 9. The acquisition method requires which of the following? a. Identifying the acquirer b. Determining the acquisition date c. Recognizing and measuring the identifiable assets acquired, the liabilities assumed and any non- controlling interest in the acquiree Downloaded by Luan ([email protected])  lOMoARcPSD|45617902 d. Recognizing and measuring goodwill or gain from a bargain purchase e. All of these 10. It occurs when the collaboration of two or more entities results to greater productivity than the sum of the productivity of each constituent working independently. a. Business combination b. Cooperation c. Synergy d. Competition 11. ABC Co. acquires 51% ownership interest in XYZ, Inc.’s preference shares a. A 100% ownership is need for ABC to obtain control over XYZ. b. It is non-determinable because it is not stated if what type of business combination is made but base on the problem it may be assumed that the combination ABC obtained control. c. ABC does not obtain control over XYZ 12. After this type of business combination, the acquired entity ceases to exist as a separate legal or accounting entity. The acquirer records in its accounting records the assets acquired and liabilities assumed in the business combination. a. Stock acquisition b. Acquisition of control without transfer of consideration c. Asset acquisition d. Combination of mutual entities 13.. In which of the following instances does Entity A have control over Entity B? A. Entity A and Entity B both have unilateral rights in directing the relevant activities of Entity B. Entity A’s rights are considered protective rights. B. Entity A has the right to direct the relevant activities of Entity B but only in accordance with the directives of Entity C. C. Entity A’s right to direct Entity B’s relevant activities is exercisable only upon the occurrence of a contingency. D. Entity A holds a 30-day forward contract to buy a majority of Entity B’s voting rights. The contract can be cancelled in a shareholders meeting. A shareholders meeting will be held in 3 month’s time. Downloaded by Luan ([email protected])  lOMoARcPSD|45617902 14. Which of the following is not an element of control? A. Power B. Exposure, or rights, to variable returns. C. Major holdings D. Ability to affect return 15. In which of the following instances does Entity A have control over Entity B? A. Entity A holds a majority of the shares of Entity B. The major holdings entitle A to voting rights that relate solely to administrative tasks. B. Entity A holds 90% interest in Entity B. Entity’s A’s interest in the earnings of Entity B is fixed at 10% of the aggregate par value of Entity A’s shareholdings. C. Entity A holds a majority of the shares of Entity B and is entitle to a variable return on Entity B’s share. The relevant activities of Entity B are directed by a third party unrelated to Entity A. D. Entity A is the ultimate boss of Entity B. Entity A makes all the major decisions and earns profit the most if Entity B earns profit, but suffer the most if Entity B incurs loss. 16. BTS Corporation owns 85% of the outstanding voting stock of Suppa Junior Corporation and Asian Cutie Corporation owns the remaining 15% of Suppa Junior's voting stock. On the consolidated financial statements of BTS Corporation and Suppa Junior Corporation, Asian Cutie Corporation is A) an affiliate. B) a noncontrolling interest. C) an equity investee. D) a related party. 17. The key criterion for the consolidation of the separate financial statements of entities is: A. substance over form; B. the existence of contracts for the supply of goods between the entities; C. capacity of the accounting systems to facilitate the necessary combination process; D. control. 18. When one entity controls the business operations of another entity, the business combination results in the following type of relationship: A. parent-subsidiary; Downloaded by Luan ([email protected])  lOMoARcPSD|45617902 B. partnership; C. a merger; D. dual-listed. 19. For the purposes of consolidated financial reporting, a group is: A. an entity that has no subsidiaries; B. a parent entity and all its subsidiaries; C. an entity that has one or more subsidiaries; D. a subsidiary entity of another entity. 20. The process of preparing the combined financial statements of a group of entities is known as: A. accrual accounting; B. condensation; C. accumulation; D. consolidation. 21. Full set of consolidated financial statements comprises a consolidated: I - Statement of financial position II - Statement of comprehensive income III - Statement of changes in equity IV - Statement of cash flows V - Condensed interim statement A. I, II and IV only; B. I, II, III and IV only; C. III, and IV only; D. IV and V only. 22. If consolidated financial statements are required to be prepared: A. they are additional to the separate financial statements of the entities in the group; Downloaded by Luan ([email protected])  lOMoARcPSD|45617902 B. there is no need to prepare separate financial statements for the entities in the group; C. the need to prepare separate financial statements for the parent entity is redundant; D. it is not necessary to prepare separate financial statements for the subsidiary entities of the group. 23. Control is automatically presumed to exist where the parent either directly or indirectly through subsidiaries owns: A. more than 25% but less than 50% of the voting power of an entity; B. more than 10% but less than25% of the voting power of an entity; C. not more than 49% of the voting power of an entity; D. more than 50% of the voting power of an entity. 24. Goodwill is attributed to both the owners of the parent and non-controlling interest (NCI) if A. The NCI is measured at proportionate share. B. The NCI is measured at fair value. C. In both A and B. D. The goodwill is big. 25. This refers to the additional consideration for a business combination to be given to the acquiree upon the happening of a contingency which is pre-agreed at the acquisition date. a. Contingent liability b. Contingent asset c. Contingent consideration d. Additional compensation 26 – 27 On January 1, 20x1, Julio Co. acquired all of the assets and assumed all of the liabilities of Julia, Inc. As of this date, the carrying amounts and fair values of the assets and liabilities of Julia acquired by Julio are shown below: Assets Carrying amounts Fair values Cash in bank 20,000 20,000 Receivables 400,000 240,000 Allowance for probable losses on (60,000) receivables Downloaded by Luan ([email protected])  lOMoARcPSD|45617902 Inventory 1,040,000 700,000 Building – net 2,000,000 2,200,000 Goodwill 200,000 40,000 Total assets 3,600,000 3,200,000 Liabilities Payables 800,000 800,000 On the negotiation for the business combination, Julio Co. incurred transaction costs amounting to ₱200,000 for legal, accounting, and consultancy fees. 26. If Julio Co. paid ₱3,000,000 cash as consideration for the assets and liabilities of Julia, Inc., how much is the goodwill (gain on bargain purchase) on the business combination? a. Goodwill – P 600,000 b. Gain on Bargain Purchase - (600,000) c. Goodwill – P 640,000 d. Gain on Bargain Purchase - (640,000) 27. If Julio Co. paid ₱2,000,000 cash as consideration for the assets and liabilities of Julia, Inc., how much is the goodwill (gain on bargain purchase) on the business combination? a. Goodwill – P 360,000 b. Gain on Bargain Purchase - (360,000) c. Goodwill – P 400,000 d. Gain on Bargain Purchase - (400,000) 28. An acquirer should at the acquisition date recognize goodwill acquired in a business combination as an asset. Goodwill should be accounted for as follows: a. Recognize as an intangible asset and amortize over its useful life. b. Write off against retained earnings. Downloaded by Luan ([email protected])  lOMoARcPSD|45617902 c. Recognize as an intangible asset and impairment test when a trigger event occurs. d. Recognize as an intangible asset and annually impairment test (or more frequently if impairment is indicated). 29. According to PFRS 3, which of the following transaction costs would increase the amount of goodwill from a business combination? a. legal fees, accounting fees and similar costs b. issuance costs of equity securities c. issuance costs of debt instruments d. none of these 30 - 32. On January 1, 20x1, JULIA Co., and JULIO, Inc. entered into a business combination effected through exchange of equity instruments. The combination resulted to JULIA obtaining 100% interest in JULIO. Both of the combining entities are publicly listed. As of this date, JULIA’s shares have a quoted price of ₱200 per share. JULIA Co. recognized goodwill of ₱600,000 on the business combination. No acquisition-related costs were incurred. Additional selected information at acquisition date is shown below: JULIO Co. Combined entity (before acquisition) (after acquisition) Share capital 1,200,000 1,400,000 Share premium 600,000 2,400,000 Totals 1,800,000 3,800,000 30. Number of shares issued by JULIACo. in the business combination. A. 9,000 shares B. 10,000 shares C. 1,000 shares D. 7,000 shares 31. Par value per share of the shares issued. A. 28 Par value per share B. 200 Par value per share C. 22 Par value per share D. 20 Par value per share 32. Acquisition-date fair value of the net identifiable assets of JULIO. Downloaded by Luan ([email protected])  lOMoARcPSD|45617902 A. 1,400,000 B. 1,600,000 C. 1,500,000 D. 1,000,000 33 – 40 On January 1, 20x1, JULIO Co. acquired 80% interest in JULIA, Inc. by issuing 5,000 shares with fair value of P30 per share and par value of P20 per share. The financial statements of JULIA Co. and JULIO, Inc. immediately after the acquisition are shown below: Jan. 1, 20x1 JULIA Co. JULIO, Inc. Cash 20,000 10,000 Accounts receivable 60,000 24,000 Inventory 80,000 46,000 Investment in subsidiary 150,000 Equipment 400,000 100,000 Accumulated depreciation (40,000) (20,000) Total assets 670,000 160,000 Accounts payable 40,000 12,000 Bonds payable 60,000 - Share capital 340,000 100,000 Share premium 130,000 - Retained earnings 100,000 48,000 Total liabilities and equity 670,000 160,000 On January 1, 20x1, the fair value of the assets and liabilities of JULIA, Inc. were determined by appraisal, as follows: Carrying Fair Fair value JULIA, Inc. amounts values increment Downloaded by Luan ([email protected])  lOMoARcPSD|45617902 Cash 10,000 10,000 - Accounts receivable 24,000 24,000 - Inventory 46,000 62,000 16,000 Equipment 100,000 120,000 20,000 Accumulated depreciation (20,000) (24,000) (4,000) Accounts payable (12,000) (12,000) - Net assets 148,000 180,000 32,000 The equipment has a remaining useful life as of 4 years from January 1, 20x1. 33 – 40 Requirement: Prepare the consolidated statement of financial position as at January 1, 20x1. JULIO Co. elects to measure non-controlling interest as its proportionate share in JULIA’s net identifiable assets. Use the following information for the next five questions: On January 1, 20x1, Julio Co. issued equity instruments in exchange for 75% interest in Julia Co. On acquisition date, Julio Co. elected to measure non-controlling interest at fair value. Julio Co.’s management believes that the fair value of the consideration transferred correlates to the fair value of the controlling interest acquired and that the fair value of the controlling interest is proportionate to the fair value of the remaining interest. Julia Co.’s net identifiable assets have carrying amount and fair value of ₱300,000 and ₱360,000, respectively. The difference is attributable to a building with a remaining useful life of 6 years. The December 31, 20x1 statements of financial position of Julio Co. and Julia Co. are summarized below: Julio Co. Julia Co. ASSETS Investment in subsidiary (at cost) 300,000 - Other assets 1,372,000 496,000 TOTAL ASSETS 1,672,000 496,000 LIABILITIES AND EQUITY Trade and other payables 292,000 120,000 Share capital 940,000 200,000 Retained earnings 440,000 176,000 Total equity 1,380,000 376,000 TOTAL LIABILITIES AND EQUITY 1,672,000 496,000 Downloaded by Luan ([email protected])  lOMoARcPSD|45617902 No dividends were declared by either entity during year. There were also no inter-company transactions and impairment in goodwill. 41. What amount of goodwill is presented in the consolidated statement of financial position on December 31, 20x1? a. 45,000 b. 35,000 c. 40,000 d. 15,000 Solutions: C Consideration transferred (cost of investment in sub.) 300,000 Previously held equity interest in the acquiree - Total 300,000 Less: Parent's proportionate share in the net assets of subsidiary (360,000 x 75%) (270,000) Goodwill attrib. to owners of parent - acquisition date 30,000 Less: Parent's share in goodwill impairment - Goodwill attrib. to owners of parent 30,000 Fair value of NCI [(300,000 ÷ 75%) x 25%] 100,000 Less: NCI's proportionate share in net assets (90,000) of subsidiary (360,000 x 25%) Goodwill attributable to NCI - acquisition date 10,000 Less: NCI's share in goodwill impairment - Goodwill attributable to NCI – current year 10,000 Goodwill, net – current year 40,000 42. How much is the consolidated total assets as of December 31, 20x1? a. 1,867,000 b. 1,907,000 c. 1,958,000 d. 1,974,000 e. Solutions: C Total assets of parent 1,672,000 Total assets of subsidiary 496,000 Investment in subsidiary (300,000) Fair value adjustments – net* 50,000 Goodwill – net 40,000 Effect of intercompany transactions - Consolidated total assets 1,958,000 *(360,000 – 300,000) = 60,000 – (60,000 ÷ 6) = 50,000 Downloaded by Luan ([email protected])  lOMoARcPSD|45617902 43. How much is the non-controlling interest in the net assets of the subsidiary on December 31, 20x1? a. 106,500 c. 136,500 b. 116,500 d. 146,500 44. How much is the consolidated retained earnings on December 31, 20x1? a. 489,500 c. 534,500 b. 498,500 d. 543,500 45. How much is the consolidated total equity on December 31, 20x1? a. 1,546,000 c. 1,642,000 b. 1,564,000 d. 1,624,000 Use the following information for the next three questions: On January 1, 20x1, Julia Co. issued equity instruments in exchange for 75% interest in Julio Co. Julio Co.’s net identifiable assets have carrying amount and fair value of ₱300,000 and ₱360,000, respectively. The difference is attributable to a building with a remaining useful life of 6 years. The December 31, 20x1 statements of profit or loss of Julia Co. and Julio Co. are summarized below: Statements of profit or loss For the year ended December 31, 20x1 Julia Co. Julio Co. Revenues 1,200,000 480,000 Operating expenses (960,000) (400,000) Profit for the year 240,000 80,000 46. How much is the consolidated profit in 20x1? a. 301,000 c. 310,000 b. 300,000 d. 336,000 47. How much is the consolidated profit attributable to owners of the parent in 20x1? a. 290,500 c. 292,500 b. 310,000 d. 232,500 47. How much is the consolidated profit attributable to non-controlling interest in 20x1? a. 6,500 c. 57,500 b. 17,500 d. 77,500 Downloaded by Luan ([email protected])  lOMoARcPSD|45617902 Use the following information for the next two questions: Julio Co. acquired 80% of Julia Co. on January 1, 20x1 for ₱100,000. The following information was determined at acquisition date: Julio Co. Julia Co. Julia Co. Carrying amt. Carrying amt. Fair value Equipment 1,000,000 500,000 400,000 Accumulated depreciation (200,000) (100,000) (80,000) Net 800,000 400,000 320,000 Remaining useful life, 1/1/ x1 10 yrs. 5 yrs. 5 yrs. 48. How much is the consolidated “Equipment – net” in the December 31, 20x2 financial statements? a. 880,000 b. 846,000 c. 832,000 d. 856,000 49. The consolidation journal entry for the depreciation of the fair value adjustment on December 31, 20x2 includes which of the following? a. 16,000 credit to depreciation expense b. 12,800 credit to retained earnings of Lion c. 32,000 credit to accumulated depreciation d. 16,000 debit to depreciation expense 50. JULIO Co. owns 80% interest in JULIA, Inc. The individual statements of financial position of the entities as of December 31, 20x1 are shown below: Statements of financial position As at December 31, 20x1 JULIO Co. JULIA, Inc. ASSETS Cash 23,000 44,000 Accounts receivable 75,000 22,000 Inventory 105,000 15,000 Investment in subsidiary (at cost) 75,000 - Investment in bonds - 13,000 Equipment 200,000 50,000 Accumulated depreciation (60,000) (20,000) TOTAL ASSETS 418,000 124,000 LIABILITIES AND EQUITY Accounts payable 43,000 30,000 Bonds payable (at face amount) 30,000 - Total liabilities 73,000 30,000 Downloaded by Luan ([email protected])  lOMoARcPSD|45617902 Share capital 170,000 50,000 Share premium 65,000 - Retained earnings 110,000 44,000 Total equity 345,000 94,000 TOTAL LIABILITIES AND EQUITY 418,000 124,000 On December 31, 20x1, JULIA, Inc. purchased 50% of the outstanding bonds of JULIO Co. from the open market for ₱13,000. There were no other intercompany transactions during the year. The consolidation journal entry to eliminate the intercompany bond transaction includes which of the following? a. debit to bonds payable for ₱30,000 b. credit to gain on extinguishment of debt for ₱4,000 c. credit to investment in bonds for ₱15,000 d. credit to gain on extinguishment of debt for ₱2,000 Use the following information for the next eleven questions: On January 1, 20x1, JULIO Co. acquired 80% interest in JULIA, Inc. The business combination resulted to goodwill of ₱3,000. On this date, JULIA’s equity comprised of ₱50,000 share capital and ₱24,000 retained earnings. NCI was measured at its proportionate share in JULIA’s net identifiable assets. JULIA’s assets and liabilities on January 1, 20x1 approximate their fair values except for the following: Fair value JULIA, Inc. Carrying Fair adjustments amounts values (FVA) Inventory 23,000 31,000 8,000 Equipment (4 yrs. remaining life) 50,000 60,000 10,000 Accumulated depreciation (10,000) (12,000) (2,000) Totals 63,000 79,000 16,000 During 20x1, the following intercompany transactions occurred: a. JULIO Co. sold goods costing ₱12,000 to JULIA, Inc., for cash, at a markup of 40% on selling price. A quarter of these goods are held in inventory by JULIA, Inc. by year-end. b. JULIO Co. acquired inventory from JULIA, Inc. for ₱12,000 cash. JULIA, Inc. uses a normal markup of 25% above its cost. JULIO's ending inventory included ₱4,000 from this purchase. The year-end individual financial statements are shown below: Statements of financial position As at December 31, 20x1 JULIO Co. JULIA, Inc. ASSETS Cash 41,000 67,750 Accounts receivable 75,000 22,000 Inventory 97,000 10,400 Investment in subsidiary (at cost) 75,000 Equipment 200,000 50,000 Accumulated depreciation (60,000) (20,000) Downloaded by Luan ([email protected])  lOMoARcPSD|45617902 TOTAL ASSETS 428,000 130,150 LIABILITIES AND EQUITY Accounts payable 43,000 30,000 Bonds payable 30,000 - Total liabilities 73,000 30,000 Share capital 170,000 50,000 Share premium 65,000 - Retained earnings 120,000 50,150 Total equity 355,000 100,150 TOTAL LIABILITIES AND EQUITY 428,000 130,150 Statements of profit or loss For the year ended December 31, 20x1 JULIO Co. JULIA, Inc. Sales 330,000 150,750 Cost of goods sold (185,000) (96,600) Gross profit 145,000 54,150 Depreciation expense (40,000) (10,000) Distribution costs (32,000) (18,000) Interest expense (3,000) - Profit for the year 70,000 26,150 51. How much is the total unrealized gross profit from the intercompany sales of inventory? a. 2,000 b. 800 c. 2,800 d. 3,600 52. How much is the NCI in net assets as of December 31, 20x1? a. 15,350 b. 18,350 c. 19,350 d. 21,070 53. How much is the consolidated retained earnings? a. 130,280 b. 136,720 c. 142,280 d. 146,280 54. How much is the consolidated profit or loss? a. 83,350 b. 78,750 c. 86,270 d. 79,450 Downloaded by Luan ([email protected])  lOMoARcPSD|45617902 55. How much is the consolidated profit or loss attributable to Owners of parent NCI a. 80,280 3,070 b. 74,460 4,290 c. 82,990 3,280 d. 76,470 2,980 56. How much is the consolidated ending inventory? a. 104,600 b. 103,800 c. 120,200 d. 98,800 57. How much is the consolidated sales? a. 426,750 b. 428,750 c. 448,750 d. 456,750 58. How much is the consolidated cost of sales? a. 260,400 b. 248,600 c. 256,400 d. 272,400 e. 59. How much is the consolidated total assets? a. 448,950 b. 489,350 c. 498,750 d. 502,250 60. How much is the consolidated total liabilities? a. 98,000 b. 102,000 c. 102,800 d. 103,000 61. How much is the consolidated total equity? a. 234,550 b. 332,850 c. 368,500 d. 386,350 Downloaded by Luan ([email protected])  lOMoARcPSD|45617902 62. According to PAS 27, investments in subsidiaries, associates or joint ventures are accounted for in the separate financial statements a. at cost. b. in accordance with PFRS 9 Financial Instruments. c. using the equity method under PAS 28 Investments in Associates and Joint Ventures. d. any of these, as a matter of accounting policy choice. 63. JULIO Co. initially tested its goodwill for impairment on September 30, 20x1. When should JULIO perform its second impairment testing on its goodwill? a. on or before September 30, 20x2 b. on or before December 31, 20x2 c. at any date not earlier than September 30, 20x2 d. at any date during 20x2 Use the following information for the next two questions: On January 1, 20x1, JULIO Co. acquired 80% interest in JULIA, Inc. by issuing 5,000 shares with fair value of ₱60 per share and par value of ₱40 per share. JULIA’s net identifiable assets have a fair value of ₱360,000. Goodwill has been computed under each of the available options under PFRS 3 as follows: Case #1 (proportionate) Case #2 (fair value) (1) Consideration transferred 300,000 300,000 (2) Non-controlling interest in the acquiree 72,000 75,000 (3) Previously held equity interest in the acquire - - Total 372,000 375,000 Fair value of net identifiable assets acquired (360,000) (360,000) Goodwill 12,000 15,000 As of December 31, 20x1, JULIA, Inc. increased its net assets (after fair value adjustments) by ₱40,000 to ₱400,000. The NCI in net assets is updated as follows: Case #1 Case #2 (proportionate) (fair value) NCI at acquisition date – Jan. 1, 20x1 72,000 75,000 Subsequent increase (20% x ₱40,000) 8,000 8,000 Carrying amount of NCI – Jan. 1, 20x2 80,000 83,000 On January 1, 20x2, JULIO Co. acquired all of the remaining 20% NCI in JULIA for ₱120,000. 64. If NCI is measured at “proportionate share,” how much is the gain or loss on the transaction to be recognized in the consolidated financial statements? a. 80,000 b. (80,000) c. (83,000) d. 0 65. If NCI is measured at “fair value,” how much is the gain or loss on the transaction to be recognized in the consolidated financial statements? a. (83,000) b. 83,000 c. (80,000) d. 0 Downloaded by Luan ([email protected])