Bartholomew Corporation acquired 80 percent of the outstanding shares of Samson Company in Year 1 by paying $5,500,000 in cash. The fair value of Samson's identifiable net assets is $5,000,000. Bartholomew uses the proportionate share of the acquired firm's net assets approach to measure noncontrolling interest. Samson is a separate cash-generating unit. At the end of Year 1, Bartholomew compiles the following information for Samson:
Amount at which the shares of Samson could be sold…………………….$5,000,000
Costs that would be incurred to sell the shares of Samson…………………$ 200,000
Present value of future cash flows from continuing to control Samson…..$4,750,000
Required:
At what amount should Samson's identifiable net assets and goodwill from the acquisition of Samson be reported on Bartholomew's consolidated balance sheet at the end of Year 1?