On October 1, 2019 Preshafood Ltd. paid $337,500 for 75% of the issued and outstanding common shares of Sobeys Corp. The recorded assets and liabilities of Sobeys Corp. on October 1, 2019 were: $ 90,000 125,000 Cash Inventory Property and equipment Accum. Amortization Goodwill Total Assets $600,000 $200,000 400,000 35,000 $650,000 Current Liabilities Long Term Liabilities Common Shares Retained Earnings Total Liabilities & Equity $ 85,000 115,000 200,000 250,000 $650,000 On October 1, 2019, Sobeys Corp. inventory had a fair value of $130,000, and the property and equipment (net) had a fair value of $435,000 and Long Term Liabilities had a fair value of $118,000. The business combination agreement stated that if Sobeys earnings exceed $2.50 per share in the next 2 years an additional payment equal to $50,000 would be paid to Sobey's shareholders. An actuary valued this a as equivalent to $35,000 if paid at acquisition date. REQUIRED: a) Calculate the amount of goodwill resulting from the business combination using the entity theory (6 marks) Calculate the non-controlling interest at acquisition date using the entity theory - Fair Value Enterprise (FVE) (3 marks) b) On October 1, 2019 Preshafood Ltd. paid $337,500 for 75% of the issued and outstanding common shares of Sobeys Corp. The recorded assets and liabilities of Sobeys Corp. on October 1, 2019 were: $ 90,000 125,000 Cash Inventory Property and equipment Accum. Amortization Goodwill Total Assets $600,000 $200,000 400,000 35,000 $650,000 Current Liabilities Long Term Liabilities Common Shares Retained Earnings Total Liabilities & Equity $ 85,000 115,000 200,000 250,000 $650,000 On October 1, 2019, Sobeys Corp. inventory had a fair value of $130,000, and the property and equipment (net) had a fair value of $435,000 and Long Term Liabilities had a fair value of $118,000. The business combination agreement stated that if Sobeys earnings exceed $2.50 per share in the next 2 years an additional payment equal to $50,000 would be paid to Sobey's shareholders. An actuary valued this a as equivalent to $35,000 if paid at acquisition date. REQUIRED: a) Calculate the amount of goodwill resulting from the business combination using the entity theory (6 marks) Calculate the non-controlling interest at acquisition date using the entity theory - Fair Value Enterprise (FVE) (3 marks) b)