On December 31, 2014, PanTech Company invests $20,000 in SoftPlus, a variable interest entity In contractual agreements completed on that date, PanTech established itself as the primary beneficiary of SoftPlus Previously, PanTech had no equity interest in SoftPlus Immediately after PanTechs investment, SoftPlus presents the following balance sheet Cash $ 20,000 Long term debt $ 120,000 Marketing software 140,000 Noncontrolling interest 60,000 Computer equipment 40,000 PanTech equity interest 20,000 Total assets $ 200,000 Total liabilities and equity $ 200,000 Each of the above amounts represents an assessed fair value at December 31, 2014, except for the marketing software a If the marketing software was undervalued by $20,000, what amounts for SoftPlus would appear in PanTechs December 31, 2014, consolidated financial statements b If the marketing software was overvalued by $20,000, what amounts for SoftPlus would appear in PanTechs December 31, 2014, consolidated financial statements Below are the correct and incorrect answers to this problem Please solve the incorrect answers marked in red with an X Thanks

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On December 31, 2014, PanTech Company invests $20,000 in SoftPlus, a variable interest entity. In contractual agreements completed on that date, PanTech established itself as

On December 31, 2014, PanTech Company invests $20,000 in SoftPlus, a variable interest entity. In contractual agreements completed on that date, PanTech established itself as the primary beneficiary of SoftPlus. Previously, PanTech had no equity interest in SoftPlus. Immediately after PanTechs investment, SoftPlus presents the following balance sheet:


Cash	$	20,000	Long-term debt	$	120,000
Marketing software		140,000	Noncontrolling interest		60,000
Computer equipment		40,000	PanTech equity interest		20,000

Total assets	$	200,000	Total liabilities and equity	$	200,000

Each of the above amounts represents an assessed fair value at December 31, 2014, except for the marketing software.

If the marketing software was undervalued by $20,000, what amounts for SoftPlus would appear in PanTechs December 31, 2014, consolidated financial statements?

b.	If the marketing software was overvalued by $20,000, what amounts for SoftPlus would appear in PanTechs December 31, 2014, consolidated financial statements? Below are the correct and incorrect answers to this problem. Please solve the incorrect answers marked in red with an X. Thanks!