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I could really use some help with part B. Paramount Corporation acquired its 75 percent investment in Sun Corporation in January 2012 for 51,455,000 and
I could really use some help with part B.
Paramount Corporation acquired its 75 percent investment in Sun Corporation in January 2012 for 51,455,000 and accounts for its investment internally using the complete equity method. At the acquisition date, total book value of Sun was 5750.000 including 5.000.000 of retained earnings and the estimated fake of the 25 percent noncontrolling interest was 5395,000. The far values of Sun's assets and liabilities were equal to the carrying values, except for the following items Fair value less Book value Accounts cavable 550.0001 ventory 162.500 tuoretto years, straight 000.000 Patsyears, straight line 100,000 Deferred tallaties created as a result of the montante acquation 27.500 The receivables were collected and the inventory sold during the first three years following the acquisition Deferred tax liabilities of $30.000 were reversed during 2012-2017. An imparmentes mude at the end of 2017 indicates a remaining value of $1,000,000 for the goodwill recognized as a result of the acquisition. Sur shareholders equity 551.290,000 induding 3000,000 of retaned earnings, at the end of 2017 For all answers below. Enter answers using all zeros, do not abbreviate to thousands or millions Required ca) Calculate the amount of goodwill initially recognized as a result of the acquisition and its allocation to the controlling and no controlling interests Allocation of goodwill moshare of goodwie Nontrolling is share of food Goodwill 50000 1,080.00 20000 (b) Calculate the balance in the investment account. carried on Paramount's books and the value of the noncontroing interest reported in the equity section of the consolidated balancesheet, as of the end of 2017 Balances as of 2017 year-end Investment in Sun Non controlling interest in Sun 3 0 Step by Step Solution
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