Below are the pre-combination condensed balance sheets of Princecraft and Sylvan Companies at December 31, 2012. On January 1, 2013, Princecraft acquired 90 percent of the voting shares of Sylvan by issuing 360,000 shares of its $1 par value common stock. Princecraft's stock is currently trading at $120 in an active market. Sylvan Company's net assets are carried at fair value. The non-controllinginterest in Sylvan has a fair value of $4,250,000.

Required
a. Calculate total goodwill and its allocation to the controlling and non-controlling interests.
b. Prepare a working paper to consolidate the balance sheets of Princecraft and Sylvan at January 1, 2013.
c. Present, in good form, the consolidated balance sheet at January 1,2013.

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Princecraft Company Sylvan Company Total assets ...., $25,000,000 Common stock.... Additional paid-in capital Retained earnings..._. .. Total liabilities and equity....$150,000,000 15,000,000 45,000,000 60000,000 5,000,000 10,000,000 2,000,000 $25,000,000