29. Perennial Corporation purchased 80 percent of the common stock of Senescent Company on December 31, year A. The stockholders' equity section of S's balance sheet on the date of combination was as follows: Common Equity Additional Paid-In Capital Retained Earnings Total Equity $200,000 100,000 400,000 $700,000 P estimated that the total enterprise value of S at the date of combination was $875,000 (assume this is what it would have cost if P had purchased 100%). The purchase differential is fully attributable to equipment with a 10-year life and a book value of $200,000 (thus, there will be no goodwill, and the differential equals P's share of the fair value increment on S's equipment). S's net income and dividends over the following three years were as follows: Year B D Net Income 30,000 40,000 30,000 Dividends 3,000 4,000 3,000 Assume any fair value increment is amortized straight-line.' Provide the requested information below and on the following page. Be sure to show your work. Required: A) How much did P Co. pay to acquire its 80 percent share in S Co.? B) P Co. will report S Co.'s equipment on the DOA consolidated Balance Sheet at C) What amount of income is assigned to the noncontrolling interest in the year D consolidated income statement? D) What is the balance in P's investment account on December 31, year C? E) What is the balance in Minority Interest" (MI/NCI - S) on the DOA Balance Sheet? Answers (mixed-up): 722400, 375k, 700k, 175k, 2500