26. Protec Company acquired 75% of Sussex Companys voting stock for $40,000 in cash. The noncontrolling interest had an estimated fair value of $11,000. Some of Sussexs identifiable assets and liabilities at the date of acquisition had fair values that were different from reported values, as follows:

	Book Value	Fair Value
Property, net	$ 2,000	$ 8,000
Identifiable intangibles	0	25,000

Sussexs total shareholders equity at the date of acquisition was as follows:

Capital stock	$1,000
Retained earnings	3,000
Treasury stock	(100)
Total	$3,900

On a date-of-acquisition consolidation working paper, eliminating entry (E) credits Investment in Sussex in the amount of

Select one:

a. $2,925

b. $3,075

c. $3,900

d. $4,100

27.

On January 1, 2023, Pali Company acquired 75% of Silicon Companys voting stock for $44,300 in cash. The noncontrolling interest had an estimated fair value of $12,700. Silicons assets and liabilities at the date of acquisition were reported at amounts approximating fair value, but it had previously unreported indefinite life identifiable intangibles valued at $21,000. Silicons total shareholders equity at January 1, 2023 was as follows:

Capital stock	$ 2,000
Retained earnings	2,900
Accumulated other comprehensive income	100
Total	$ 5,000

It is now December 31, 2025 (three years later). Identifiable intangibles impairment through the end of 2024 was $1,000 and goodwill impairment through the end of 2024 was $400. There is no impairment of either identifiable intangibles or goodwill in 2025. Pali uses the complete equity method to account for its investment. December 31, 2025 trial balances for Pali and Silicon follow.

	Pali Dr (Cr)	Silicon Dr (Cr)
Current assets	$ 5,000	$ 1,000
Property, net	42,000	28,000
Intangibles
Investment in Silicon	45,732
Goodwill
Liabilities	(53,887)	(20,664)
Capital stock	(15,000)	(2,000)
RE, beginning	(19,680)	(4,400)
AOCI, beginning	(1,100)	(116)
Sales revenue	(25,000)	(14,000)
Equity in net income of Silicon	(1,350)
Equity in OCI of Silicon	(15)
Cost of goods sold	20,000	9,000
Operating expenses	4,000	3,200
Other comprehensive income	(700)	(20)
Total	$ 0	$ 0

What is the initial goodwill related to this acquisition?

Select one:

a. $31,000

b. $18,300

c. $36,000

d. $52,000