Cash flow, issue stock, year of purchase. Duckworth Corporation Exercise 2 (LO 1) purchases an 80% interest in Panda Corporation on January 1, 2017, in exchange for 5,000 Duck- worth shares (market value of S18) plus S155,000 cash. The fair value of the NCI is proportionate to the price paid by Duckworth for its interest. The appraisal shows that some of Panda's equip- ment, with a 4-year estimated remaining life, is undervalued by S20,000. The excess is attributed to goodwill. Panda Corporation'sbalance sheet on December 31,2016 is shown on page358