Nugget Company’s balance sheet on December 31, 20X6, was as follows:

Assets Liabilities and Stockholders’ Equity
Cash $ 100,000 Current Liabilities $ 300,000
Accounts Receivable 200,000 Long-Term Debt 500,000
Inventories 500,000 Common Stock (par $1 per share) 100,000
Property, Plant, and Equipment (net) Additional Paid-In Capital 200,000
900,000 Retained Earnings 600,000
Total Assets Total Liabilities and Stockholders’ Equity $1,700,000 $1,700,000

On December 31, 20X6, Gold Company acquired all of Nugget's outstanding common stock for $1,500,000 cash. On that date, the fair (market) value of Nugget's inventories was $450,000, and the fair value of Nugget's property, plant, and equipment was $1,000,000. The fair values of all other assets and liabilities of Nugget were equal to their book values.
As a result of Gold's acquisition of Nugget, the consolidated balance sheet of Gold and Nugget should reflect goodwill in the amount of:

a) $500,000. b) $550,000. c) $600,000. d)$650,000.

The ledger of laurie rental agency on march 31 of the current year includes the following selected accounts before adjusting entries have been prepared. debit credit prepaid insurance $ 5,400 supplies $ 4,500 equipment 40,000 accumulated depreciation—equipment $12,600 notes payable 25,000 unearned rent revenue 11,100 rent revenue 90,000 interest expense –0– salaries and wages expense 20,000 an analysis of the accounts shows the following. 1. the equipment depreciates $600 per month. 2. two-thirds of the unearned rent revenue was earned during the quarter. 3. the note payable is dated january 1 and bears 12% interest. 4. supplies on hand total $800. 5. the insurance policy is a two-year policy dated january 1. instructions: a. prepare the adjusting entries at march 31, assuming that adjusting entries are made quarterly. additional accounts are: depreciation expense, insurance expense, interest payable, and supplies expense. b. compute the ending balances for prepaid insurance, unearned rent revenue, and rent revenue, and indicate in which financial statement those items will be reported.