Pennant Corporation acquired $90$ percent of Saylor Company's common stock for $$16,000,000$ in cash on January $2,2013.$ At that date, Saylor's $$9,600,000$ of reported net assets were fairly stated, except land was undervalued by $$800,000$ and unrecorded developed technology was valued at $$1,600,000.$ The estimated fair value of the noncontrolling interest is $$3,200,000$ at the acquisition date.

$($a$)$ Calculate total goodwill and its allocation to the controlling and noncontrolling interests.

Enter answers using all zeros $($do not abbreviate to in thousands or in millions$).$

Allocation of goodwill between controlling and noncontrolling interest:

Total goodwill Answer

Pennant's goodwill Answer

Goodwill to noncontrolling interest Answer

$($b$)$ Prepare the working paper eliminating entries needed to consolidate Pennant and Saylor on January $2,2013.$

Enter answers using all zeros $($do not abbreviate to in thousands or in millions$).$

ConsolidationJournal

Description Debit Credit

$($E$)$

Shareholders' equity $-$ Saylor Answer Answer

Investment in Saylor Answer Answer

Noncontrolling interest in Saylor Answer Answer

$($R$)$

Land Answer Answer

Developed technology Answer Answer

Goodwill Answer Answer

Investment in Saylor Answer Answer

Noncontrolling interest in Saylor Answer Answer