On January 1, 2017, Paloma Corporation exchanged $1,710,000 cash for 90 percent of the outstanding voting stock of San Marco Company. The consideration transferred by Paloma provided a reasonable basis for assessing the total January 1, 2017, fair value of San Marco Company. At the acquisition date, San Marco reported the following owners' equity amounts in its balance sheet 1.5 points Common atock Additional paid-in capital Retained earnings 60,000 265,000 In determining its acquisition offer, Paloma noted that the values for San Marco's recorded assets and liabilities approximated their fair values. Paloma also observed that San Marco had developed internally a customer base with an assessed fair value of $800,000 that was not reflected on San Marco's books. Paloma expected both cost and revenue synergies from the combination. Print References At the acquisition date, Paloma prepared the following fair-value allocation schedule: Fair value of San Harco Company Book value of San Harco Company Excess fait value s 2,900, 000 725, 000 1, 175,000 to custonez base (30-year renaining life) to goodvi11 375,000 At December 31, 2018, the two companies report the following balances Pa2ona 1,943,000)(675,000) San Marco Revenues Cost of goods aold Depreciation expense Amortization expense Interest expense Equsty in income of San Harco -100,000 125,000 275,000 27,500 322, 000 120, 0oo 11,000 ,000 Net income Retained earnings, 1/1 Net income Dividends declared (25,000) (2,625, 800)(395, 009) 437,000 350, 000 (215,000 25,000 2 to customer base (10-year remaining lite) to goodwill 800,000 $ 375,000 At December 31, 2018, the two companies report the following balances: 1.5 points San eBook Print References Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity in income of San Marco $ (1,843, 000) (675,000) 322, 000 120,000 11,000 7,000 1. 100, 000 125, 000 275,000 27,500 (121,500) (437,000) Net income Retained earninga, 1/1 Net income Dividends declared (215,000) (437,000) 350,000 (215,000) 25,000 $(2,712,000) Retained earnings, 12/31 Current aets Investment in San Marco Buildings and equipment Copyzights (585,000) 1,203,000 130,000 1,854,000 931,000 863, 000 950, 000 107 000 ,939, 000S1,400, 000 Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings, 12/31 (485, 000) (542, 000) (900,000 (300 000) (155, 000) (400,000) (60,000) and equities (,938158,000 S(1, 400, 000) Total 1iabilities and equities $(. 939, 000) At year-end, there were no intra-entity receivables or payables a. Determine the consolidated balances for this business combination as of December 31 2018 b. If instead the noncontrolling interests acquisition date fair value is assessed at $167 500, what changes would be evident in the Chapter 4 Homework Questions 2 S(1,84 s (575,000 322,000 Cost of goods sold 1,100 125,000 275,000 27.500 1.000 points Esuity in San Maice lcome (121 Book Censolidated net To noncontrolling intenest To Paloma Company Retained Earnings Net Income Dividends declared Retained Earrings 12/31 2.625 300) 5 (395) 50 000 25,000 s 1204 000 1,854,000 Cunent Assets 43000 nvestment n San Marce Customer base 31 000863 000 50 00187.000 Buldings and Eqipmert Copynights Goodwil Total Assats Accounts Payatle Nates Payatle 54210011164 Prev 2 of 2 Additional paid-in capital Retained earnings, 12/31 (300,000) (2,712, 000) (60, 000) 585, 000) 2 Total 1iabilities and equities s (4,939, 000) (1,400,000) At year-end, there were no intra-entity receivables or payables. 1.5 points a. Determine the consolidated balances for this business combination as of December 31, 2018 b. If instead the noncontrolling interest's acquisition-date fair value noncontrolling interest's acquisition date fair value is assessed at $167500, what changes would be evident in the consolidated statements? eBook Print References Complete this question by entering your answers in the tabs below Required A Required B If instead the noncontroling intereat's acqutsition-date fair vakue is assessed at $167.500, what changes would be evident in the consolidated statements? Required A