Paramount Corporation acquired its $75$ percent investment in Sun Corporation in January $2012,$ for $$1,455,000$ and accounts for its investment internally using the complete equity method. At the acquisition date, total book value of Sun was $$750,000$ including $$400,000$ of retained earnings, and the estimated fair value of the $25$ percent noncontrolling interest was $$395,000.$ The fair values of Sun's assets and liabilities were equal to their carrying values, except for the following items:

Fair value less Book value

Accounts receivable $$(50,000)$

Inventory $(62,500)$

Equipment $(10$ years, straight$-$line$)(200,000)$

Patents $(5$ years, straight$-$line$)100,000$

Deferred tax liabilities $($created as a result of the nontaxable acquisition$)37,500$

The receivables were collected and the inventory sold during the first three years following the acquisition. Deferred tax liabilities of $$30,000$ were reversed during $20122017.$ An impairment test made at the end of $2017$ indicates a remaining value of $$1,000,000$ for the goodwill recognized as a result of the acquisition. Sun's shareholders' equity is $$1,250,000$ including $$900,000$ of retained earnings, at the end of $2017.$

For all answers below: Enter answers using all zeros, do not abbreviate to thousands or millions.

Required

$($a$)$ Calculate the amount of goodwill initially recognized as a result of the acquisition, and its allocation to the controlling and noncontrolling interests.

Allocation of goodwill

Goodwill Answer $1$

$1455000$

Paramount$$s share of goodwill: Answer $2$

$395000$

Noncontrolling interest$$s share of goodwill Answer $3$

$1850000$

$($b$)$ Calculate the balance in the investment account, carried on Paramount's books, and the value of the noncontrolling interest, reported in the equity section of the consolidated balance sheet, as of the end of $2017.$

Balances as of $2017$ year$-$end

Investment in Sun Answer $4$

$687500$

Noncontrolling interest in Sun Answer $5$

$162500$

$($c$)$ Assume eliminating entry $($C$),$ to reverse Paramount's equity method entries for $2018,$ has been made. Prepare $2018$ eliminating entries $($E$)$ and $($R$)$ to adjust Sun's assets to the correct values as of the beginning of $2018,$ eliminate the remainder of the investment, and recognize the beginning$-$of$-2018$ value of the noncontrolling interest.

Consolidation Journal

Description Debit Credit

$($E$)$

Answer $6$

Answer $7$

Answer $8$

Answer $9$

Answer $10$

Answer $11$

Noncontrolling interest in Sun Answer $12$

Answer $13$

$($R$)$

Answer $14$

Answer $15$

Answer $16$

Equipment, net Answer $17$

Answer $18$

Deferred tax liabilities Answer $19$

Answer $20$

Answer $21$

Answer $22$

Answer $23$

Noncontrolling interest in Sun Answer $24$

Answer $25$

I$\text{'}$m not sure if the answers are correct that i have done!