4) Polaris Incorporated purchased 80% of The Solar Company on January 2, 2014, when Solar's book value was $800,000. Polaris paid $700,000 for their acquisition, and the fair value of noncontrolling interest was $175,000. At the date of acquisition, the fair value and book value of Solar's identifiable assets and liabilities were equal. At the end of the year, the separate companies reported the following balances: Solar $5,700,000 $1,250,000 15,200,000 3,400,000 Polaris Current assets Plant & equipment Investment in Solar 780,000 Goodwill Current liabilities 3,600,000 950,000 Long-term debt Stockholders' Equity 11,680,000 2,800,000 6,400,000 900,000 Requirement 1: Calculate consolidated balances for each of the accounts as of December 31, 2014. Requirement 2: Assuming that Solar has paid no dividends during the year, what is the ending balance of the noncontrolling interest in the subsidiary? At December 31, 2013, Pandora Incorporated issued 40,000 shares of its $20 par common stock for all the outstanding shares of the Sophocles Company. In addition, Pandora agreed to pay the owners of Sophocles an additional $200,000 if a specific contract achieved the profit levels that were targeted by the owners of Sophocles in their sale agreement. The fair value of this amount, with an agreed likelihood of occurrence and discounted value, is $160,000. In addition, Pandora paid $10,000 in stock issue costs, $40,000 in legal fees, and $48,000 to employees who were dedicated to this acquisition for the last three months of the year. Summarized balance sheet and fair value information for Sophocles immediately prior to the acquisition follows. to present Book Value Fair Value 100,000 $100,000 280,000 250,000 Cash Accounts Receivable 520,000 640,000 Buildings and Equipment (net) 750,000 870,000 Trademarks and Tradenames500,000 Inventory Total Assets 1,650.000 Accounts Payable Notes Payable Retained Earnings Total Liabilities and Equity $1650.000 $200,000 $190,000 00,000 900,000 550000 Required 1. Prepare Pandora's general journal entry for the acquisition of Sophocles assuming that Pandora's stock was trading at $35 at the date of acquisition and Sophocles dissolves as a separate legal entity. 2. Prepare Pandora's general journal entry for the acquisition of Sophocles assuming that Pandora's stock was trading at $35 at the date of acquisition and Sophocles continues as a separate legal entity. 3. Prepare Pandora's general journal entry for the acquisition of Sophocles assuming that Pandora's stock was trading at $25 at the date of acquisition and Sophocles dissolves as a separate legal entity. 4. Prepare Pandora's general journal entry for the acquisition of Sophocles assuming that Pandora's stock was trading at $25 at the date of acquisition and Sophocles survives as a separate legal entity