Atlanta Inc. acquired 80 percent of the outstanding shares of Sub Inc. by paying $40,000,000 in cash at the beginning of Year 1.

6. Atlanta Inc. acquired 80 percent of the outstanding shares of Sub Inc. by paying $40,000,000 in cash at the beginning of Year 1. The fair value of Sub's identifiable net assets (identifiable assets $38,000,000 less assumed liabilities $6,000,000) acquired by Atlanta Inc. is $32,000,000 in this business combination. Atlanta uses the proportionate share of acquired firm's net assets approach to measure non-controlling interest. Sub Inc. is a separate cash generating unit. At the end of Year 1, Atlanta compiles following information for Sub Inc.: Fair value of shares of Sub... $32,000,000 Cost to sell shares of Sub.. ... ... Present value of future cash flows from continuing to control Sub Inc..... .$30,500,000 sem $500,000 Required: (a). Compute and record the Goodwill acquired by Atlanta at the beginning of Year 1. (b). At what amount should Georgia's identifiable net assets and goodwill be reported on Atlanta's consolidated balance sheet at the end of Year 1