n 1/1/2021, Sander Inc. acquired 80% of Lake Inc. by paying $850,000. This included a $50,000 control premium. Lake reported stockholders equity accounts on that date as follows:

Common stock: $520,000

Retained Earnings: 252,000

An equipment was undervalued in the Lakes financial records by $28,000. This equipment had a 8 year remaining life. A customer list of $90,000 was to be recognized and amortized over 10 years.

Compute the amount of Goodwill recognized in the acquisition and the allocation of goodwill to the controlling and noncontrolling interests.

a. Compute the amount of Goodwill recognized.

b. Show the allocation of goodwill to the Controlling and Noncontrolling Interests.