ACCT 4201: Advanced Financial Accounting A1-5 Required: a) Using the Entity theory (Fair Value Enterprise Method), calculate goodwill using fair values. Please highlight the goodwill amount in yellow. (2 marks) b) Calculate goodwill using net book values, including allocation of the acquisition differential. You must also calculate the value of non-controlling interest in this calculation. Please highlight the NCI amount in yellow. (2 marks) c) Prepare a consolidated balance sheet. Your statement must be in good form as per the assignment submission guidelines. Marks will be deducted for poor presentation. Please note that the above balance sheets are for your information and are not considered to be "good form." (11 marks) Question 4 (15 marks) On January 1, 2021, Protection Inc. purchased 80% of the outstanding ordinary shares of Safe Co. for $440,000. The balance sheets for both companies immediately after the transaction appear below. Protection Inc. Safe Co. Fair value Book value Cash $ 115,000 $ 20,000 Accounts receivable 205,000 80,000 $ 20,000 90,000 130,000 560,000 160.000 Inventory Capital assets Land 160,000 550,000 700,000 80,000 90,000 160.000 Investment in Safe Co. 440,000 Goodwill 25.000 Total assets $ 700.000 $ 915.000 970 000 $ 250.000 $ 170.000 $ 170.000 Accounts payable Long-term debt Common shares 440,000 160/000 640,000 350.000 240.000 460.000 66.000 Retained earnings Total liabilities and shareholder's equity 1700 000 $ $15.000