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Pesto Corporation acquired 60 percent of Sauce Corporation's common stock on January 1, 20x7, for $255,600 in cash. At the acquisition date, the book values and fair values of Sauce's assets and liabilities were equal, and the fair value of the noncontrolling interest was equal to 40 percent of the total book value of Sauce. The stockholders' equity accounts of the two companies at the date of purchase are: Connon Stock ($10 par value) Additional Paid-In Capital Retained Earnings Total Stockholders' Equity Pesto Corporation $396,000 225,000 359,000 5980,000 Sauce Corporation $178,000 70,000 178,000 $426,000 Required: a. What amount will be assigned to the noncontrolling interest on January 1, 20x7. in the consolidated balance sheet? Total noncontrolling interest b. Prepare the stockholders' equity section of Pesto and Sauce's consolidated balance sheet as of January 1, 20x7. STOCKHOLDERS' EQUITY SECTION OF PESTO AND SAUCE'S Consolidated Balance Sheet January 1, 2007 Controlling interest Total Stockholders' Equity $900.000 20 Required: a. What amount will be assigned to the noncontrolling interest on January 1, 20X7, in the consolidated balance sheet? Total no controlling Interest b. Prepare the stockholders' equity section of Pesto and Sauce's consolidated balance sheet as of January 1, 20x7. STOCKHOLDERS' EQUITY SECTION OF PESTO AND SAUCES Consolidated Balance Sheet January 1, 20X7 Controlling Interest Total Controlling Interest $ 0 Total Stockholders' Equity $ 0