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2) On July 1, 2014, Polliwog Incorporated paid cash for 21,000 shares of Salamander Company's $10 par value stock, when it was trading at $22

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2) On July 1, 2014, Polliwog Incorporated paid cash for 21,000 shares of Salamander Company's $10 par value stock, when it was trading at $22 per share. At that time, Salamander's total stockholders' equity was $597,000, and they had 30,000 shares of stock outstanding, both before and after the purchase. The book value of Salamander's net assets is believed to approximate the fair values Requirement 1: Prepare the journal entry that Polliwog would record at the date of acquisition on their general ledger. Requirement 2: Calculate the balance of the goodwill that would be recorded on Polliwog's general ledger, on Salamander's general ledger, and in the consolidated financial statements. 3) The consolidated balance sheet of Pasker Corporation and Shishobee Fa December 31, 2014, contains the following accounts and balances: rm, its 80% owned subsidiary, as of Pasker Corporation and Subsidiary Consolidated Balance Sheet at December 31, 2014 Balances Cash $57,000 210,000 330,000 Accounts receivable-net Inventories Other current assets Plant assets-net 255,000 870,000 Goodwill from consolidation 112.000 $1,839,000 Accounts payable Other liabilities $219,000 210,000 Capital stock Retained earnings Noncontrolling interest 1,050,000 240,000 20.000 $1,839,000 Pasker Corporation acquired its interest in Shishobee Farm on January 1, 2014, when Shishobee Farm had $450,000 of Capital Stock and $210,000 of Retained Earnings. Shi values when ishobee Farm's net assets had fair values equal to their book Pasker acquired its interest. No changes have occurred in the amount of outstanding stock since the date of the business combination. Pasker uses the equity method of accounting for its investment. Required: Determine the following amounts: 1. The balance of Pasker's Capital Stock and Retained Earnings accounts at December 31, 2014. 2. Cost of Pasker's purchase of Shishobee Farm on January 1, 2014

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