At the beginning of the current year, Packwild Tours Inc. acquired 60 percent of Snowbird Resorts common stock for $45 million in cash and stock. The estimated fair value of the noncontrolling interest was $20 million. At the date of acquisition, Snowbirds equity accounts consisted of capital stock of $19 million and a retained earnings deficit of $4 million. Snowbird reports its identifiable net assets at amounts approximating fair value, with these exceptions: the land is undervalued by $1.0 million, property ( 20 -year remaining life) is overvalued by $5.0 million, and previously unreported technology with an indefinite life was valued at $10.0 million. For the year following the acquisition, Snowbird reports a net income of $80,000. Impairment testing reveals $200,000 impairment on the technology but no impairment on other assets. Packwild reports its investment in Snowbird on its own books using the complete equity method.

a. Calculate the amount of goodwill initially reported for this acquisition.

b. Calculate equity in net income for the current year, reported on Packwilds books, and the non-controlling interest in Snowbirds income reported on the consolidated income statement.