Below are the precombination condensed balance sheets of Princecraft and Sylvan Companies just prior to Princecrafts acquisition of 90 percent of the voting shares of Sylvan for $43 million in cash. The book values of Sylvan Companys net assets approximate fair value. The noncontrolling interest in Sylvan has a fair value of $4,250,000.

	Princecraft Company	Sylvan Company
Cash	$60,000,000	$2,000,000
Other current assets	20,000,000	8,000,000
Property and equipment, net	70,000,000	15,000,000
Total assets	$150,000,000	$25,000,000
Total liabilities	$30,000,000	$8,000,000
Common stock	15,000,000	5,000,000
Additional paid-in capital	45,000,000	10,000,000
Retained earnings	60,000,000	2,000,000
Total liabilities and equity	$150,000,000	$25,000,000

Required

a. Calculate total goodwill and its allocation to the controlling and noncontrolling interests.

Enter answers in thousands. For example, $43,000,000 is $43,000 (in thousands).

Total goodwill
Allocation to controlling interests
Allocation to noncontrolling interests

b. Prepare the consolidation working paper at the date of acquisition.

• Enter answers in thousands ($2,000,000 equals $2,000 (in thousands).
• Use negative signs with your answers in the "Dr (Cr)" columns to indicate a credit balance, when appropriate.

Consolidation Working Paper
		Accounts Taken From Books			Eliminations			Consolidated Balances
(in thousands)		Princecraft Dr (Cr)	Sylvan Dr (Cr)		Debit	Credit		Dr (Cr)
Cash			$2,000
Other current assets			8,000
Property and equipment, net			15,000
Investment in Sylvan			-				(E)
							(R)
Goodwill			-	(R)
Total liabilities			(8,000)
Common stock			(5,000)	(E)
Additional paid-in capital			(10,000)	(E)
Retained earnings			(2,000)	(E)
Noncontrolling interest							(E)
							(R)
Total		$ 0	$ 0

c. Prepare the consolidated balance sheet at the date of acquisition, in good form.

• Enter answers in thousands ($38,000,000 equals $38,000 (in thousands).
• Do not use negative signs with any of your answers.

Consolidated Balance Sheet Date of Acquisition
(in thousands)
Assets
Cash
Other current assets
Property and equipment, net
Goodwill
Total assets
Liabilities and shareholders equity
Total liabilities
Shareholders equity
Princecrafts shareholders equity:
Common stock
Additional paid-in capital
Retained earnings
Total Princecrafts shareholders equity
Noncontrolling interest
Total shareholders equity
Total liabilities and shareholders equity