On December 31, 2017, PanTech Company invests $23,000 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 PanTech's investment, SoftPlus presents the following balance sheet:

Cash $ 23,000 Long-term debt $ 138,000

Marketing software 161,000 Noncontrolling interest 69,000

Computer equipment 46,000 PanTech equity interest 23,000

Total assets $ 230,000 Total liabilities and equity $ 230,000

Each of the above amounts represents an assessed fair value at December 31, 2017, except for the marketing software.

Accordingly the December 31 fair value of SoftPlus is assessed at $92,000.

a. If the marketing software was undervalued by $23,000, what amounts for SoftPlus would appear in PanTech's December 31, 2017,

consolidated financial statements?

b. If the marketing software was overvalued by $23,000, what amounts for SoftPlus would appear in PanTech's December 31, 2017,

consolidated financial statements?