Below are the pre-combination condensed balance sheets of Princecraft and Sylvan Companies just prior to Princecraft’s acquisition of 90 percent of the voting shares of Sylvan for \($43\) million in cash. The book values of Sylvan Company’s net assets approximate fair value. The noncontrolling interest in Sylvan has a fair value of \($4,250,000.\)

Required

a. Calculate total goodwill and its allocation to the controlling and noncontrolling interests.

b. Prepare the consolidation working paper at the date of acquisition.

c. Prepare the consolidated balance sheet at the date of acquisition, in good form.

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Cash..... Other current assets. Property and equipment, net.. Total assets Total liabilities.. Common stock... Additional paid-in capital. Retained earnings Total liabilities and equity.... Princecraft Company $ 60,000,000 20,000,000 70,000,000 $150,000,000 $ 30,000,000 15,000,000 45,000,000 Sylvan Company $ 2,000,000 8,000,000 15,000,000 $25,000,000 $ 8,000,000 5,000,000 10,000,000 60,000,000 2,000,000 $150,000,000 $25,000,000