Date of Acquisition Consolidation Eliminating Entries

Pennant Corporation acquired 80 percent of Saylor Company's common stock for $10,000,000 in cash on January 2, 2013. At that date, Saylor's $6,000,000 of reported net assets were fairly stated, except land was undervalued by $500,000 and unrecorded developed technology was valued at $1,000,000. The estimated fair value of the noncontrolling interest is $2,000,000 at the acquisition date. (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 on January 2, 2013.

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

*Drop down choices include:

(E)

Cash

Shareholder's Equity - Saylor

Investment in Saylor

(R)

Land

Cash

Investment in Saylor

please show work. thank you!!!!!

Consolidationjournal Description Debit Credit Noncontrolling interest in Saylor (R) Developed technology Goodwill Noncontrolling interest in Saylor