Ponon Corporation acquired 75% of the stock of Santo Corporation on January 2, 2020, for $10,000,000 cash and common shares with a par value of $1,000,000 and market value of $20,000,000. The market value of the noncontrolling interest on this date was $8,484,375.

The book value of Santo’s shareholders’ equity was $12,000,000. The differential included the following accounts where book value and fair value differed:

Book Value Fair Value

Land 4,500,000 3,800,000

Plant assets, net (10 year life) 9,000,000 10,000,000

Patents (previously unrecorded – 6 year life) 0 3,000,000

Long-term debt (15 year life) 3,500,000 3,050,000

Required:

2020:

• Prepare an acquisition analysis to determine total goodwill allocated to the parent and NCI.