On January 1, 2021, Petunia Company purchased an 85% interest in the capital stock of Sunflower Company for $3,400 (Cash + Shares of Petunia Company). Petunia Company uses the equity method to record its investment in Sunflower Company.

The plant is undervalued by 700 (7 year remaining life) and the equipment is overvalued by 200 (10 year remaining life) on January 1, 2021.

Balance sheet for the Petunia and Sunflower at acquisition are included on the December 31, 2021 Consolidation worksheets on the last pages.

What is the total fair value of Sunflower at acquisition?

What is the the goodwill of Sunflower at acquisition?

What is the amount of non-controlling Interest reported at acquisition

on the January 1, 2021 balance sheet?

Prepare the working paper entry to eliminate any income earned from Sunflower Corporation during 2021 (look to worksheet for amounts).

Account Title	DR	CR