Coca-Cola Bottling Consolidated acquired a 75 percent interest in Piedmont Coca-Cola Bottling Partnership on January 1, 2003. The other 25 percent interest was held by The Coca-Cola Company. Assume the following information related to this acquisition:
Acquisition price, paid by Coca-Cola Bottling Consolidated, in cash....... $70,000,000
Fair value of the 25 percent interest held by The Coca-Cola Company.......15,000,000
Book value of Piedmont at date of acquisition....................................25,000,000
The excess of fair value over book value at the acquisition date is attributed to previously unreported franchise rights valued at $5,000,000, and to goodwill.
Piedmont has not engaged in any stock transactions since it was acquired. The franchise rights have indefinite lives, and total impairment losses for 2003 through 2011 are $1,000,000. There are no goodwill impairment losses for this period. Piedmont's business prospects declined during 2012, resulting in franchise rights impairment of $2,500,000 and goodwill impairment of $6,000,000. Coca-Cola Consolidated uses the complete equity method to report its investment in Piedmont on its own books.
The trial balances of Coca-Cola Consolidated and Piedmont at December 31,2012, appear below:

Required
a. Calculate goodwill for this acquisition, and its allocation to controlling and noncontrolling interests.
b. Prepare a schedule calculating the 2012 equity in net loss of Piedmont on Coca-Cola Consolidated's books ($4,807,000) and the noncontrolling interest in the 2012 net loss to be reported on the consolidated income statement.
c. Prepare a schedule showing how the December 31,2012, investment balance on Coca-Cola Consolidated books ($68,793,000) was calculated.
d. Prepare a consolidation working paper for December 31,2012.
e. Present the consolidated financial statements, in good form, for 2012.

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Dr (Cr) Coca-Cola in thousands) Consolidated Piedmont $ 30,000 233,800 $ 160,000 250,000 466,400 68,793 120,000) (700,000) (12,000) (100,000) (50,500) 12,000 30,000 2,000 (1,200,000) 4,807 760,000 400,000 500 28,000 0 Current liabilities.. Long-term debt.. Common stock (20,000) (210,000) (1,000) (12,000) 18,000) Retained earnings, January 1.REA... Accumulated other comprehensive loss Treasury stock.... Dividends. Net sales. Equity in net loss of Piedmont... 200 (300,000) 175,000 14,000 Selling, delivery and administrative expenses. Amortization expense.... 8,000 Totals 0