Exercise 5-4

On January 1, 2015, Porter Company purchased an 80% interest in Salem Company for $256,900. On this date, Salem Company had common stock of $210,300 and retained earnings of $128,400. An examination of Salem Companys balance sheet revealed the following comparisons between book and fair values:

		Book Value		Fair Value
Inventory		$29,600		$34,800
Other current assets		50,100		55,100
Equipment		303,400		347,200
Land		196,800		196,800

(a)

Determine the amounts that should be allocated to Salem Companys assets on the consolidated financial statements workpaper on January 1, 2015. (Parent Share, Non-controlling share, and Entire Value)