Group 2: partial acquisition Pell Company acquires 80% of Den ers Company for SS00,000 on lanuary 1,2014. The rernai ning 20% Non-controlling Interest has clear fair value proportionate to price. Deme date. E having a 10 Pell's purchasing rs reported common stock of $300,000 and retained carnings of $210,000 on that quipment was undervalued by $30,000 and buildings were undervalued by 540,000, ea -year remaining life. Any excess consideration transferred over fair value was attributed to goodwill with an indefinite life. Based on an annual review, goodwill has not bee impaired Demers earms income and pays dividends as follows 2015 S100,000 S120,000 50,000 2014 2016 Net income Dividends S130,000 40,000 60,000 Assume the EQUITY METHOD is applied Required: a). Do the purchase price allocation as of the acquisition date for Pell's $500,000 controlling share acquisition (10 points) b), use a account to show the change of balance for Pell's-Investment in Demers from 1/1/2014 to 12/3 1/2014 and then to 12/31/2015 (15 points)