On January 1, 2016, Parflex Corporation exchanged $344,000 cash for 90 percent of Eagle Corporations outstanding voting stock. Eagles acquisition date balance sheet follows:

Cash and receivables	$	15,000		Liabilities	$	76,000
Inventory		35,000		Common stock		150,000
Property and equipment (net)		350,000		Retained earnings		174,000
	$	400,000			$	400,000

On January 1, 2016, Parflex prepared the following fair-value allocation schedule:

Consideration transferred by Parflex	$	344,000
10% noncontrolling interest fair value		36,000
Fair value of Eagle		380,000
Book value of Eagle		324,000
Excess fair over book value		56,000
to equipment (undervalued, remaining life of 9 years)		18,000
to goodwill (indefinite life)	$	38,000

The companies financial statements for the year ending December 31, 2018, follow:

	Parflex				Eagle
Sales	$	(862,000	)		$	(366,000	)
Cost of goods sold		515,000				209,000
Depreciation expense		191,200				67,000
Equity in Eagle's earnings		(79,200	)			0
Separate company net income	$	(235,000	)		$	(90,000	)
Retained earnings 1/1	$	(500,000	)		$	(278,000	)
Net income		(235,000	)			(90,000	)
Dividends declared		130,000				27,000
Retained earnings 12/31	$	(605,000	)		$	(341,000	)
Cash and receivables	$	135,000			$	82,000
Inventory		255,000				136,000
Investment in Eagle		488,900				0
Property and equipment (net)		964,000				328,000
Total assets	$	1,842,900			$	546,000
Liabilities	$	(722,900	)		$	(55,000	)
Common stockParflex		(515,000	)			0
Common stockEagle		0				(150,000	)
Retained earnings 12/31		(605,000	)			(341,000	)
Total liabilities and owners' equity	$	(1,842,900	)		$	(546,000	)

At year-end, there were no intra-entity receivables or payables.

1. Compute the goodwill allocation to the controlling and noncontrolling interest.

2. Show how Parflex determined its Investment in Eagle account balance.

3. Determine the amounts that should appear on Parflexs December 31, 2018, consolidated statement of financial position and its 2018 consolidated income statement.

Compute the goodwill allocation to the controlling and noncontrolling interest.

	Controlling Interest	NCI
Goodwill allocation

Show how Parflex determined its Investment in Eagle account balance.

Initial value
Change in Eagles RE
Excess fair value amortization
Equity income 2018
Eagle 2018 dividends
Investment in Eagle 12/31/18

Determine the amounts that should appear on Parflexs December 31, 2018, consolidated statement of financial position and its 2018 consolidated income statement. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Noncontrolling Interest and Consolidated Totals columns should be entered with a minus sign.)

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