Paymore Shoes acquired 80 percent of the voting stock of Spire Footwear on February 1, 2017, for $21 million. The fair value of the noncontrolling interest at the acquisition date was $3 million. The excess of Spires fair value over its $4 million book value was attributed to limited-life identifiable intangible assets ($5 million, 5-year life) and goodwill. Paymores fiscal year ends January 31. As of February 1, 2020, the goodwill and identifiable intangibles are not impaired. There is no impairment of either intangible in fiscal 2021. Spire transfers merchandise to Paymore on a regular basis, at a markup of 25% on cost. Following is information on intercompany merchandise transactions for fiscal 2021:
Balance in Paymores beginning inventory, purchased from Spire, $1,000,000.
Balance in Paymores ending inventory, purchased from Spire, $750,000.
Total sales from Spire to Paymore, at the price charged to Paymore, $25 million.
Paymore uses the complete equity method to account for its investment in Spire on its own books. The separate trial balances for Paymore and Spire at January 31, 2021, are below.
(in thousands)	Paymore	Spire
	Dr (Cr)	Dr (Cr)
Current assets	$10,000	$4,500
Plant and equipment, net	1,200,000	750,000
Intangibles	101,360	--
Investment in Spire	22,080	--
Liabilities	-945,000	-745,000
Capital stock	-28,000	-3,000
Retained earnings, beginning	-340,000	-5,000
Sales revenue	-1,200,000	-300,000
Equity in net income	-440	--
Cost of sales	980,000	200,000
Operating expenses	200,000	98,500
Total	$0	$0
Calculate the allocation of goodwill between controlling and noncontrolling interests.
Enter answers in thousands.
(in thousands)
Goodwill		?
Allocation to controllling interests		?
Allocation to noncontrolling interests		?
Calculate equity in net income, appearing on Paymores separate books ($440,000), and the noncontrolling interest in net income for fiscal 2021.
Enter answers in thousands ($440,000 equals $440 in thousands)
Use a negative sign with answers that reduce net income amounts.
(in thousands)		Total	Equity in NI	Noncontrolling interest in NI
Spires reported net income		?	?	?
Revaluation write-off:
Identifiable intangibles		?	?	?
Intercompany transactions:
Confirmed profit on upstream beg. inventory		?	?	?
Unconfirmed profit on upstream end. inventory		?	?	?
		?	?	?
Prepare a working paper to consolidate the January 31, 2021, trial balances of Paymore and Spire. Label your eliminating entries (C), (I), (E), (R), (O), and (N).
Enter answers in thousands ($440,000 equals $440 in thousands)
Use negative signs with Cr (credit) answers in the Consolidated Balances Dr(Cr) column.
Consolidation Working Paper
	Trial Balances		Eliminations		Consolidated
	Taken From Books				Balances
(in thousands)	Paymore	Spire	Debit	Credit	Dr (Cr)
	Dr (Cr)	Dr (Cr)
Current assets	$10,000	$4,500		?	(I-2) ?
Plant and equipment, net	1,200,000	750,000
Intangibles	101,360	--	(R) ?	?	(O) ?
Investment in Spire	22,080	--		?	(C) ?
				?	(E)
				?	(R)
Goodwill	--	--	(R) ?		?
Liabilities	-945,000	-745,000			?
Capital stock	-28,000	-3,000	(E) ?		?
Retained earnings, beg.	-340,000	-5,000	(I-1) ?		?
			(E) ?
Noncontrolling interest	--	--		?	(E) ?
				?	(R)
				?	(N)
Sales revenue	-1,200,000	-300,000	(I-3) ?		?
Equity in net income of Spire	-440	--	(C) ?		?
Cost of sales	980,000	200,000	(I-2) ?	?	(I-1) ?
				?	(I-3)
Operating expenses	200,000	98,500	(O) ?		?
Noncontrolling interest in NI	--	--	(N) ?		?
	--	--	?	?	?