Problem:
Two accounts that arise from consolidation accounting are goodwill and noncontrolling interest.
Required:
Question 1: What is goodwill, and how does it arise? Which company reports goodwill, the parent or the subsidiary? Where is goodwill reported?
Question 2: What is noncontrolling interest, and which company reports it, the parent or the subsidiary? Where is noncontrolling interest reported?
Note: Be sure to show how you arrived at your answer.