95 96 97 Question 6 98 On January 2 Parent borrowed 80 000 and used the proceedsto purchase 90% of the outstanding common shares of Small. 09 Parent had no prior equity interest in Small. Ten equal principal and interest payments begin December 30. The excess of the implied 100 fair value of small over the carrying amount of its identifiable net assets should be assigned 70% t 01 Moreover, the fair value of the noncontrolling interest Na is 10% of the implied fair value of the acquiree. 102 The following are the balance sheets of Parent and Small on January 1: 104 105 Parent Small 106 Current assets 107 Noncurrent assets 108 109 Total assets 110 111 Current liabilities 70000 $20,000 ,000 40,000 $160,000 $60,000 30000 $10,000 0,000 80,00050,000 12 Noncurrent liabilities 113 Equity 114 NonControlling Interest NCI 115 116 Total liabilities and equity $160,000$60.000 118 On Parent's January 2 consolidated balance sheet, current assets equal 119 On Parent's January 2 consolidated balance sheet, current liabilities equal On Parent's January 2 consolidated balance sheet, noncurrent assets equal 121 On Parent's January 2 consolidated balance sheet, the sum of the noncurrent liabilities and the NCI equal 22 On Parent's January 2 consolidated balance sheet, Parent's shareholders' equity should be Sheeti Ready