E 11-5 Consolidated net income and goodwill under entity and parent-company theories Ping Ltd. and its affiliate’s consolidated financial statement reported a goodwill of $40,000 under the entity theory at December 31, 2014, after it acquired an 80 percent interest in Singh Ltd. for $280,000. There exists a difference in the fair value and the book value of net assets at the purchase date due to undervalued plant assets of $50,000 with a five-year remaining useful life. Separate income for Ping and Singh were $200,000 and $50,000, respectively.

REQuIRED 1. Calculate goodwill if Ping decided to use the parent-company theory.

2. Calculate consolidated net income and noncontrolling interest share under both theories.