On January 1, 2020, P company acquires 90 percent of the outstaniding common stock of S company, in exchange for $1,710,000 cash.At the acquisition date, S company's total fair value, including the noncontrolling interest, was assessed at $1,900,000. Also at the acquisition date,S company's book value was $725,000.(common stock 400,000, additional paid-in capital 60,000, retained earnings 265,000)P company observed that S company had developed internally a customer base with an assed fair value of $800,000 that was not reflected on S company's books. The remaining useful life of cutomer base is ten years.Book valueFair valueCustomer base0800000For internal reporting purposes, P company employs the equity method to account for this investment. The following account balances are for the yearending December 31, 2020, for both companies. At year-end, there were no intra-entity receivables or payables.P companyS companyRevenues($120,000)($120,000)Cost of goods sold40,00040,000Depreciation expenseAmortization expenseEquity in income of Gardena($121,500)0Net income($437,000)($215,000)Retained earnings (1/1/2020)($330,000)($265,000)Net income($437,000)($215,000)Dividends declared350,00025,000Retained earnings (12/31/2020)Current assetsInvestment in S company1,854,0000TrademarkProperty and equipment (net)PatentsTotal assetsAccounts payableCommon stock($900,000)($400,000)Additional paid-in capital($300,000)($60,000)Retained earnings (12/31/2020)Total liabilities and equities1. What is the goodwill of Gardena at acquisition?Your answer:fair value of sub-book value of sub- undervalued FV of customer base2.What is the amount of Non-Controlling Interest at acquisition (1/1/2020)?Your answer:3. The consolidation JE D to eliminate any dividend earned from Subsidiary during 2020 (consolidation JE D)Your answer:Dr.Cr.4. The consolidation JE S to eliminate subsidiary's stockholders' equity atDecember 31, 2020 (consolidation JE S)Your answer:Dr.Cr.5.What is the consolidated balance for investment at December 31, 2020?Your answer:6. What is the consolidated balance for equiy in income of S company at December 31, 2020?Your answer:7. What is the consolidated balance for dividend declared at December 31, 2020?Your answer:8. What is the consolidated net income attributable to controlling interests (consolidated entity) of S company at December 31, 2020?Your answer:9. What is the consolidated balance for additional paid in capital at December 31, 2020?Your answer:10. What is the consolidated balance for common strock at December 31, 2020?Your answer:11. What is the consolidated balance for sales at December 31, 2020?Your answer:12. What is the consolidated balance for cost of goods sold at December 31, 2020?Your answer:13. What is the consolidated balance for beginning balance of retained earnings in 2020?Your answer:14. What is the total fair value of subsidiary at the acquision date (1/1/2020)?Hint: It is in the information providedYour anwer:15. Is customer base undervalued asset or overvalued asset?Your answer:16. Is incremental fair value on customer base debited or credited in Consolidation Journal Entry A?