c. If the acquisition-date fair value of the noncontrolling interest were $ 104,500, then Sun's fair value would increase by $2,000 to $529,500 and goodwill would increase by the same $2,000 to $17,000. The entire $2,000 increase in goodwill would be allocated to the noncontrolling interest as follows: Controlling Interest Noncontrolling Interest Total Acquisition-date fair value $425,000 $104,500 $529,500 410,000 Relative fair value of Sun's identifiable net assets (80% and 20%) Goodwill 102,500 $ 2,000 512,500 $ 17,000 $ 15,000 Therefore, the consolidated balance sheet would show goodwill at $17,000 (instead of $15,000), and the noncontrolling interest in Sun Company balance would show $164,000 (instead of $162,000). c. If the acquisition-date fair value of the noncontrolling interest were $ 104,500, then Sun's fair value would increase by $2,000 to $529,500 and goodwill would increase by the same $2,000 to $17,000. The entire $2,000 increase in goodwill would be allocated to the noncontrolling interest as follows: Controlling Interest Noncontrolling Interest Total Acquisition-date fair value $425,000 $104,500 $529,500 410,000 Relative fair value of Sun's identifiable net assets (80% and 20%) Goodwill 102,500 $ 2,000 512,500 $ 17,000 $ 15,000 Therefore, the consolidated balance sheet would show goodwill at $17,000 (instead of $15,000), and the noncontrolling interest in Sun Company balance would show $164,000 (instead of $162,000)