Separating Parent’s Cost into Components On 5/1/06, Pana Inc. acquired 60% of Sonic Inc.’s out¬

standing common stock at a cost of $219,000. Sonic’s capital account balances at that date are as follows:

Common stock . $ 50,000 Additional paid-in capital . 550,000 Accumulated deficit . (200,000)

Each of Sonic’s assets and liabilities has a current value equal to its book value, except for the fol¬

lowing items:

Book Value Current Value Leasehold improvements Deferred charges .

Note receivable .

12% bonds payable. . . .

$ 95,000 $ 60,000 40,000 75,000 85,000 -0-

100,000 120,000 Required Analyze the Investment account as of the acquisition date. Include the noncontrolling interest.