Hoyle, Schaefer and Doupnik Chapter4 Problem 27

Parker, Inc. acquires 70% of Sawyer Company for $420,000. The remaining 30% of Sawyers outstanding shares continue to trade at a collective value of $174,000. On the acquisition date, Sawyer has the following accounts:

	Book Values	Fair Values
Current Assets	$210,000	$210,000
Land	170,000	180,000
Building	300,000	330,000
Liabilities	(280,000)	(280,000)

The buildings have a 10-year life. In addition, Sawyer holds a patent worth $140,000 that has a five-year life but is not recorded on its financial records.

1) What is the goodwill at the acquisition date? (Provide calculation here)

2) What is the proportion of goodwill assigned to NCI? (Provide calculation here)