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Question 13 Puff Co. acquired 40% of Straw, Inc.'s voting common stock on January 2, 2005, for $400,000. The carrying amount of Straw's net assets at the purchase date totaled $900,000. Fair values equaled carrying amounts for all items except equipment, for which fair values exceeded carrying amounts by $100,000. The equipment has a five year life. Goodwill, if any, is expected to have a useful life of 10 years. During 2005, Straw reported net income of $150,000. What amount of income from this investment should Puff report in its 2005 income statement? Question 14 The discount resulting from the determination of a note payable's present value should be reported on the balance sheet as a(an) Question 15 Land was purchased to be used as the site for the construction of a plant. A building on the property was sold and removed by the buyer so that construction on the plant could begin. The proceeds from the sale of the building should be Question 16 Park Co. uses the equity method to account for its January 1, 2004, purchase of Tun Inc.'s common stock. On January 1, 2004, the fair values of Tun's FIFO inventory and land exceeded their carrying amounts. How do these excesses of fair values over carrying amounts affect Park's reported equity in Tun's 2004 earnings? Question 17 On July 1, 2005, Pell Co. purchased Green Corp. ten-year, 8% bonds with a face amount of $500,000 for $420,000. The bonds mature on June