On January 1, 2017, Purple Company acquired an 80% interest in Red Company for $500,000. The fair value of the rest 20% is $100,000. The book value of Reds equity on the acquisition date was $300,000 and the fair value of Reds identifiable assets was $450,000. On the acquisition date, Reds PPE, net was undervalued by $100,000 and the value of Reds unreported Patents was $50,000. The remaining life of Reds PPE, net was 10 years and that of Reds patents was 5 years.

Show the AAP analysis based on the above information. Also compute the total goodwill and allocate it between controlling and noncontrolling interests. Show all calculations