PAR Inc. Inc. purchased 90% of the outstanding voting shares of SUB Inc. for $90,000 on January 1, 2021.

Fair value versus carrying value differences were identified as follows:

Jan 1, 2021	SUB Inc.
	carrying value	fair value
Cash	$5,000	$5,000
Accounts Receivable	$30,000	$30,000
Inventory	$30,000	$50,000
Equipment (net)	$25,000	$20,000
Land	$20,000	$30,000
Trademark	$10,000	$18,000
Total Assets	$120,000	$153,000
Liabilities	$70,000	$70,000
Common Shares	$30,000
Retained Earnings	$20,000
Total Liabilities and Equity	$120,000

The equipment had a remaining useful life of 10 years from the date of acquisition. SUB's trademark is estimated to have a remaining life of 5 years from the date of acquisition.

Part A

PAR has chosen the fair value enterprise method and value the non-controlling interest in SUB assuming a linear relationship for the non-controlling interest value (our default assumption).

Calculate at acquisition date:

1. NCI

ii) Goodwill

Part B

Assume INSTEAD that PAR has chosen to use the fair value enterprise method but value the non-controlling interest in SUB using the market value of the shares on acquisition date (rather than linear) which would value the non-controlling interest at $8,500.

- Calculate at acquisition date the Goodwill AND show the composition of Goodwill that is the parents versus the NCIs share.

Part C

ASSUME INSTEAD that PAR has chosen to use the identifiable net assets method to value the non-controlling interest.

Calculate at acquisition date:

1. NCI

ii) Goodwill