Packer Corporation buys $85$ percent of the voting stock of Slattery Inc. on January $1,2023,$ at an acquisition cost of $$11,000,000.$ The fair value of the noncontrolling interest at the date of acquisition is $$1,320,000.$ Slattery$$s equity at the date of acquisition consists of $$2,200,000$ in capital stock and a retained deficit of $$2,750,000.$ The book values of Slattery$$s reported net assets approximate fair value, except for property with a $20-$year remaining life that is overvalued by $$1,650,000.$ Slattery also has $$5,500,000$ in indefinite$-$lived unreported developed technology. Slattery reports a net loss of $$110,000$ for $2023.$ The developed technology and goodwill related to this acquisition are unimpaired in $2023.$ Packer uses the complete equity method to account for its investment in Slattery on its own books.

a$.$ Calculate the goodwill reported for this acquisition, and its allocation to Packer and to the noncontrolling interest in Slattery.

Total goodwill: Answer

Goodwill to Packer $($controlling interest$)$: Answer

$0$

Goodwill to non$-$controlling interests: Answer

$0$

b$.$ Calculate equity in net loss for $2023,$ reported by Slattery, and the noncontrolling interest in Slattery$$s net loss for $2023,$ reported on the consolidated income statement.

Note: Use negative signs with answers that reduce net income amounts.

Total Equity in NL Noncontrolling

Interest in NL

Slattery$$s reported net loss Answer

$(110,000)$

Answer

$(93,500)$

Answer

$(16,500)$

Revaluation write$-$off:

Property Answer

$82,500$

Answer

$70,125$

Answer

$12,375$

Answer

$(27,500)$

Answer

$(23,375)$

Answer

$(4,125)$

c$.$ Prepare eliminating entries $($C$),($E$),($R$),($O$),$ and $($N$)$ necessary to consolidate the separate trial balances of Packer and Slattery at December $31,2023.$

Debit Credit

$($C$)$

$0$

Answer

$0$

$0$

Answer

To eliminate current year's equity method entries

$($E$)$

$0$

$0$

Answer

$0$

$0$

Answer

$0$

$0$

Answer

$0$

$0$

Answer

To eliminate the subsidiary's equity accounts

$($R$)$

$0$

$0$

Answer

$0$

$0$

Answer

$0$

$0$

Answer

$0$

$0$

Answer

$0$

$0$

Answer

To revalue subsidiary's assets and liabilities to fair value

$($O$)$

$0$

$0$

Answer

$0$

$0$

Answer

To write off the revaluations for the current year

$($N$)$

$0$

$0$

Answer

$0$

$0$

Answer

To recognize noncontrolling interest in net income

d$.$ At what amount is the noncontrolling interest in Slattery reported on the December $31,2023,$ consolidated balance sheet?

$Answer

$0$