Reference no: EM132869182

Question 1: Joker acquired 90% of Queen on 1/1/X1 for $625,000. The 25% owned by others was determined to have a fair value of $510K at that date. The book value of Queen's net assets was $540,000. The book value of Queen's assets and liabilities reflected fair value, with the exception of some unrecorded intangible assets which had a fair value of $75,000. The Intangible assets had an estimated life of 5 years. At the end of year 2 (12/31/X2), what amount was debited to intangible assets in the "A" entry to set up the step/up and step down, and how much was debited to the non-controlling interest in that entry for the intangible assets and goodwill in total? (That is, what amounts replace the question marks in the below entry for 12/31/X2)?Dr. Intangible assets ????

Dr. Goodwill
Cr. Investment in Queen
Cr. Non-controlling interest (NCI) ????

Select one:

a. Intangible asset $60,000 NCI $17,000
b. Intangible asset $60,000 NCI $44,500
c. Intangible asset $75,000 NCI $46,000
d. Intangible asset $45,000 NCI $15,500
e. Intangible asset $45,000 NCI $43,000