Date of Acquisition Consolidation Eliminating Entries

Pennant Corporation acquired 80 percent of Saylor Companys common stock for $20,000,000 in cash. At the date of acquisition, Saylors $5,000,000 of reported net assets were fairly stated, except land was overvalued by $200,000 and unrecorded developed technology was valued at $2,000,000. The estimated fair value of the noncontrolling interest is $4,000,000 at the acquisition date.

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

Enter answers using all zeros (do not abbreviate to in thousands or in millions).

Allocation of goodwill between controlling and noncontrolling interest:
Total goodwill	$Answer
Pennant's goodwill	Answer
Goodwill to noncontrolling interest	Answer

(b) Prepare the working paper eliminating entries needed to consolidate Pennant and Saylor at the date of acquisition.

Enter answers using all zeros (do not abbreviate to in thousands or in millions).

Consolidation Journal
Description	Debit	Credit
(E)
AnswerCashShareholders' equity - SaylorInvestment in Saylor	Answer	Answer
AnswerInvestment in SaylorCashShareholders' equity - Saylor	Answer	Answer
Noncontrolling interest in Saylor	Answer	Answer
(R)
AnswerDeveloped technologyLandInvestment in SaylorCash	Answer	Answer
Goodwill	Answer	Answer
Land	Answer	Answer
AnswerInvestment in SaylorLandCash	Answer	Answer
Noncontrolling interest in Saylor	Answer	Answer