Hello Expert, The original FULL question search is, On January 1, 2020, Corgan Company acquired 70 percent of the outstanding voting stock of Smashing, Inc., for a total of $1,505,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $940,000, retained earnings of $490,000, and a noncontrolling interest fair value of $645,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with a 20-year remaining life. Corgan uses the equity method to account for its investment in Smashing.

Can you please provide an explanation for Entry I? Please provide detail calculations. Thank you.