Advanced Accounting Final Project NAME Paradise Corporation acquired 80 percent (8,000) of the 10,000 outstanding shares of voting stock of Sun 'n Shade Company, on January 2, 2019, paying $27.25 a share when the stock was selling at $26 (Hint: Controlling Interest is valued at the price actually paid. Noncontrolling Interest is valued at the current stock price). At the date of acquisition, Sun 'n Shade had Capital Stock (no par value) of $10,000, Retained Eamings of $119,300, and Accumulated Other Comprehensive Income of $3,700. Paradise uses the complete equity method to account for its investment in Sun 'n Shade. At the date of acquisition, Sun 'n Shade's assets and liabilities were fairly reported except for the following. There was no contingent consideration. Fair Book Market Remaining Future Cash Flows at 12/31/2022 Value Item 1/2/2019 Value 1/2/2019 Life @ 1/2/2019 Undiscounted Discounted Property, Plant & 10,000 70,000 Equipment 15 years N/A N/A Unrecorded Items: In Process Research & 0 15,000 Development 5 years 5,000 4,500 Contracts 0 22,000 4 years 17,000 13,250 Assembled Workforce 0 75,000 Indeterminate N/A NA Goodwill 0 Indeterminate Revaluations are amortized on a straight-line basis. Identifiable intangible assets and goodwill arising from this acquisition are tested annually for impairment. IPRD was impaired during 2019-2021 for $2,500. Sun 'n Shade paid $1,500 in dividends. In 2022, Sun 'n Shade charged Paradise $10,000 for janitorial services costing $7,500. See Requirement 6, 1-1. Paradise and Sun 'n Shade regularly sell merchandise to each other. During 2022, they made the following transfers: See Requirement 6, 1-1 through 1-6. Affiliated Transfers of Merchandise 2022 Paradise Sun 'n Shade Transfers to Affiliate 18,110 7,850 Merchandise Transfers Remaining in Inventory 12/31/22 Beginning 960 (Up) Ending 1,025 (Up 1,635 (Dn) 2,420 (Dn) Paradise's inventories were purchased from Sun 'n Shade Seller's Markup 25% on cost 20% on sales & vice versa. Intercompany Receivables 5,400 Intercompany Payables 2,300 2,300 5,400