38. On January 1, 2020. Paloma Corporation exchanged $1.710.000 cash for 90 percent of the out- standing voting stock of San Marco Company. The consideration transferred by Paloma provided a reasonable basis for assessing the total January 1, 2020, fair value of San Marco Company. At the acquisition date, San Marco reported the following owners cquity amounts in its balance sheet: Common stock Additional paid-in capitel Retained earnings $400.000 60,000 265,000 in determining its acquisition offer, Paloma noted that the values for San Marco's recorded assets and liabilities approximated their fair values. Paloma niso observed that San Marco had developed internally a customer base with an assessed fair value of $800.000 that was not reflected on San Marco's books. Paloma expected both cost and revenue synergies from the combination. At the acquisition date, Paloma prepared the following fair-value allocation schedule: MUHAIMI MHCHILI Fair value of San Marco Company Book value of San Marco Company Excess fair value to customer base (10-year remaining fe). to goodwill $1,900,000 725.000 1.175.000 800,000 $ 375.000 MILIH At December 31, 2021, the two companies report the following balances: Paloma Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity in income of San Marco Net income. San Marco $ (675,000) 322.000 120.000 11,000 7.000 -0. $ 215.000 $ 1395,000) (215.000) 25,000 $ (585.000 Retained earnings. 1/1 Net income Dividends declared Retained earnings, 12/31 . Current assets Investment in San Marco Buildings and equipment Copyrights Total assets $(1,843.000) 1.100.000 125.000 275,000 27,500 (121.500) $ 437.000) $(2.625,000) (437.000) 350,000 $(2.7 12.000 $ 1.204,000 1,854.000 931,000 950.000 $4.939,000 $ 485.000 (642.000 (900.000 (B00.000) (272.000) SA 989,000 LIHI Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings, 12/31 Total liabilities and equities $ 430.000 -0% 863.000 107.000 $ 1.400.000 $ (200.000) 155.000) 400.000) (60.000 (585.000) SIL.400.000) CS FC At year-end, there were no intra-entity receivables or pryables. a. Determine the consolidated balances for this business combination as of December 31, 2021, b. If instead the noncontrolling interest's acquisition date fair value is assessed at $167.500. what changes would be evident in the consolidated statements