On January 1, 2015, ChocoNichols Company acquired 80% of AllieSmith Company's common stock and 60% of its non-voting, cumulative preferred stock. The consideration transferred by Choco was $1,500,000 for the common and $450,000 for the preferred. Any excess acquisition-date fair value over book value is considered goodwill.

The capital structure of Allie immediately prior to the acquisition is:

Common stock, $1 par value (800,000 shares outstanding) -- $800,000

Preferred stock, 5% cumulative, $10 par value, 40,000 shares outstanding - $400,000

Additional paid in capital - $600,000

Retained earnings - $700,000

Total stockholders equity - $2,500,000

a. Compute the goodwill recognized in consolidation.

b. Compute the non-controlling interest in Allie at date of acquisition. (10 points)

Please show all work