On January 1, 2020, 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, 2020, fair value of San Marco Company. At the acquisition date, San Marco reported the following owners' equity amounts in its balance sheet Common stock Additional paid-in capit Retained earnings 1400,000 50,000 265,000 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 intemally 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. At the acquisition date, Paloma prepared the following fair-value allocation schedule: Fair value of San Marce Company Book value of San Marce Company Excess fair value to customer base (10-year remaining life) $1,500,000 725,000 1,175,000 800,000 375,000 At December 31, 2021, the two companies report the following balances Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity in Income of San Marco Net incone Retained earnings, 1/1 Net incone Dividends declared Retained earnings, 12/31 Carrent assets Investment in San Marce Buildings and equipment Copyrights Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings, 12/31 Total liabilities and equities Palane San Marco (1,843,000) 5 (675,000) 125,000 275,000 27,500 (121,500) (437,000) $12,625,000) 350,000 $12,712,000) $ 1,204,000 1,854,000 931,000 322,000 120,000 11,000 7,000 (215,000) $ (295,000) (215,000) 35,000 51585,000) 430,000 63,000 558,ese 107,000 14,539, $1,400,000 (485,000) (200,000) (542,000) (0,0) (400,000) (300,000) (2,712,000) (60,000) (585,000) At year-end, there were no intre-entity receivables or payables Determine the consolidated balances for this business combination as of December 31, 2021 b. If instead the noncontroting interest's acquisition-dete fair value is essessed at $167.500, what changes would be evident in the consolidated statements? a. Letermine the consoared omarices for this business comonation as of Lecember 31, VEL b. If instead the noncontrolling interest's acquisition-date fair value is assessed at $167,500, what changes would be evident in the consolidated statements? Complete this question by entering your answers in the tabs below. Required A Required B Determine the consolidated balances for this business combination as of December 31, 2021. (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. Input all amounts as positive values.) PALOMA CORPORATION AND SAN MARCO COMPANY Consobdation Worksheet For Year Ending December 31, 2021 Accounts Paloma San Marce Consolidation Entries Debil Credit Nencontrolling Consolidated Interest Totals $ Revenues $ (675,000) Cost of goods sold (1.843,000) 1,100,000 322.000 Depreciation expense 125.000 120,000 Amortization expense 275,000 27,500 (121,500) 11,000 7,000 Equity in income of San Marco Separate company net income Consolidated net income S (437,000) $ (215,000) To noncontrolling interest To Paloma Company $ Retained earings, 1/1 $ Net income Dividends declared (2,825,000) (437,000) 350,000 (395.000) (215,000) 25.000 S Retained eamings, 1201 2712,000) $ (585,000) Current assets Investment in San Marco $ 1.204,000 $ 1,54,000 430.000 Customer base Buildings and equipment Copyrights Goodwill Total assets 31.000 950,000 863,000 107,000 $4.930,000 $ 1.400.000 $(485.000) S (200,000) Notes payable (542.000) (156.000) NCI in San Marce Commen slack (00,000) (400.000) Additional paid-in capital Retained eamings, 12/31 (300,000) (0.000) (2.712.000) (585.000) $ Total abilities and equities (4.930 000) $ (1,400,000) Required D> At year-end, there were no intra-entity receivables or payables. a. Determine the consolidated balances for this business combination as of December 31, 2021. b. If instead the noncontrolling interest's acquisition-date fair value is assessed at $167.500, what changes would be evident in the consolidated statements? Complete this question by entering your answers in the tabs below. Required A Required B If instead the noncontrolling interest's acquisition-date fair value is assessed at $167,500, what changes would be evident in the consolidated statements? Both goodwill and noncontroling interest will by