Equity in Net Income and Noncontrolling Interest in Net Income

At the beginning of the current year, Packwild Tours Inc. acquired $60$ percent of Snowbird Resorts' common stock for $$45$ million in cash and stock. The estimated fair value of

the noncontrolling interest was $$20$ million. At the date of acquisition, Snowbird's equity accounts consisted of capital stock of $$19$ million and a retained earnings deficit of $$4$

million. Snowbird reports its identifiable net assets at amounts approximating fair value, with these exceptions: land is undervalued by $$1\mathrm{.}0$ million, property $(20-$year

remaining life$)$ is overvalued by $$5\mathrm{.}0$ million, and previously unreported technology with an indefinite life was valued at $$10\mathrm{.}0$ million. For the year following acquisition,

Snowbird reports net income of $$80,000.$ Impairment testing reveals $$200,000$ in impairment on the technology but no impairment of other assets. Packwild reports its

investment in Snowbird on its own books using the complete equity method.

Note: Enter all zeros with your numerical answers, do not abbreviate your answers in thousands or in millions.

a$.$ Calculate the amount of goodwill originally reported for this acquisition.

$

b$.$ Calculate equity in net income for the current year, reported on Packwild's books, and the noncontrolling interest in Snowbird's income, reported on the consolidated

income statement.

Note: Use negative signs with answers that reduce net income amounts.