Pierre Corporation acquired 75 percent of Selene Corporation's common stock for $20,100,000 on January 2, 2011. The estimated fair value of the noncontrolling interest was $5,900,000. Selene's book value at date of acquisition was $10,000,000, and its identifiable net assets were fairly stated except for previously unreported completed technology, valued at $4,000,000, with a remaining life of 5 years, straight-line. It is now December 31, 2014, and you are preparing consolidated financial statements for Pierre and Selene. Following is information on intercompany transactions:
1. On January 2,2012, Pierre sold equipment to Selene for $6 million and recorded a gain of $2 million. The equipment had a remaining life of 10 years at that time.
2. Selene supplies Pierre with component parts for its products, at a markup of 20 percent on cost. During 2014, Selene made sales totaling $20 million to Pierre. Pierre had parts purchased for $1.8 million and $2.4 million in its 2014 beginning and ending inventory balances, respectively.
3. Pierre sells materials to Selene for use in its manufacturing processes, at a markup of 20 percent on selling price. During 2014, Pierre made sales totaling $15 million to Selene. Selene had materials purchased for $3 million and $2.8 million in its 2014 beginning and ending inventory balances, respectively.
Goodwill arising from this acquisition was impaired by $3 million during the years 2011-2013, and no further goodwill impairment occurred in 2014. Pierre uses the complete equity method to report the investment in Selene on its own books. The separate December 31, 2014 trial balances of Pierre and Selene ap-pear below, before Pierre's end-of-year adjustment to record its equity in Selene's income for 2014.

Required
a. Calculate the total goodwill arising from this acquisition and its percentage allocation to the controlling and noncontrolling interests.
b. Prepare a schedule calculating Pierre's equity in the income of Selene for 2014, and the noncontrolling interest in Selene's income for 2014.
c. Update Pierre's trial balance for its 2014 equity in Selene's income and prepare a working paper consolidating the 2014 trial balances of Pierre and Selene.
d. Present the consolidated financial statements of Pierre and Selene, in proper format

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Dr (Cr) (in thousands) Pierre Selene Cash. Receivables. Inventories .. Plant and equipment, net....N S 1,000 2,500 5,600 70,000 460,000 20,225 (4,000) 10,000 30,000 150,000 Current liabilities.. (2.800) (489,825) (5,000) (90,000) 40,000 Retained earnings, January 1... Dividends. Sales revenue.. Cost of sales. .. Operating expenses...a Totals 2,000) 20,000) 3,000 (50,000) 35,000 8,000 (150,000) 100,000 42,000