Prince Corp. and Sprite Corp. reported the following balance sheets at January 1, 2008:

On January 2, 2008, Prince issued $36,000 of stock and used the proceeds to purchase 90% of Sprites common stock. The excess of the purchase price over Sprite’s book value of net assets was allocated 60% to inventory and 40% to goodwill.

Required:
Show the amounts that Prince will report on its January 2, 2008 consolidated balance sheet for the following items under the

(a) purchase method and

(b) acquisition method.
. Current assets.
. Noncurrent assets.
. Goodwill.
. Current liabilities.
. Noncurrent liabilities (include minority interests).
. Stockholders’ equity (controlling interest).
. Stockholders’ equity (noncontrolling or minority interest).

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Prince Sprite Current assets $30,000 $15,000 Noncurrent assets 55,000 25,000 Total assets $85,000 $40,000 Current liabilities Long-term debt $20,000 $10,000 20,000 5,000 Stockholders' equity 45,000 25,000 Total liabilities and stockholders' equity $85,000 $40,000