For each of the following statements, indicate whether it is correct or incorrect. If you think it is incorrect explain why. 1. Dividends paid to noncontrolling shareholders are eliminated in preparing the consolidated statement of retained earnings as are those paid by the subsidiary to the parent. Only dividends paid by the parent company are reported as dividends in the consolidated financial statements. 2. The noncontrolling shareholders' claim on the subsidiary's net assets is based on the book value of the subsidiary's net assets. 3. Goodwill represents the difference between the book value of the subsidiary's net assets and the amount paid by the parent to buy ownership. 4. Total assets reported by the parent generally will be less than total assets reported on the consolidated balance sheet. 5. Consolidated retained earnings do not include the noncontrolling interest's claim on the subsidiary's retained earnings.