On January 1, 2007, Harrah's Entertainment, Inc. acquired a 70 percent interest in the company that owns Emerald Safari Resort for $600 million in cash and stock. Assume the following information at the date of acquisition (in millions):
Book value of Emerald Safari Resort $580
Fair value of noncontrolling interest in Emerald Safari Resort 225
Fair value of previously unrecorded identifiable intangibles 100
The previously unrecorded identifiable intangibles have indefinite lives. In 2007 and 2008, intense competition and a declining economic outlook led to reduced projected performance for this property. Testing indicated impairment of the identifiable intangibles by $5 million in 2007 and $8 million in 2008. Although the goodwill was not impaired in 2007, the entire goodwill balance associated with this property was impaired in 2008. The December 31, 2008, trial balances of Harrah's and Emerald Safari Resort appear below. Harrah's uses the complete equity method to report the investment on its own books.

Required
a. Calculate total goodwill for this acquisition and its allocation to the controlling and noncontrolling interests.
b. Prepare a schedule to calculate the 2008 equity in net loss and the noncontrolling interest in the net loss of Emerald Safari Resort.
c. Prepare a consolidation worksheet to consolidate the trial balances of Harrah's and Emerald Safari Resort.

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Dr (Cr) Emerald Safari (in millions) Harrah's $ 1,400 2,500 Resort 200 2,549 800 Current assets.... 17,696.2 515.2 Current labilities (1,500) (14,000) 20) (5,500) (900) 100 (6,600) (1.400) (1,000) (300) 2,600) Capital surplus Retained earnings, January 1. (320) 300) 5 2,200) (300) 200) Casino revenues.... Rooms revenues. Equity in net loss of Emerald Safari Resort Direct casino, food and beverage, rooms expenses.. General and administrative expenses.. 108.6 7,200 1,400 $ 0 1,670 1,000 Totals