Pri Party correct Mark 10 out of 3.00 as question question Consolidation Eliminations Several years after Acquisition Paramount Corporation acquired its 75 percent investment in Sun Corporation in January 2012 for $3.492,000 and accounts for its investment internally using the complete equity method. At the acquisition date, total book value of Sun was $1,800,000 including 5960,000 of retained earnings, and the estimated fair value of the 25 percent noncontrolling interest was $948,000. The fair values of Sun's assets and liabilities were equal to their carrying values, except for the following items Fair valueless Book value Accounts receivable Inventory (150,000) Equipment (10 years, straight line) (480,000) Patents (5 years, straight line) Deferred tax liabilities (created as a result of the nontaxable acquisition 90,000 The receivables were collected and the inventory sold during the first three years following the acquisition. Deferred tax liabilities of 72.000 were reversed during 2012-2017. An impairment test made at the end of 2017 indicates a remaining value of $2,400,000 for the goodwill recognized as a result of the acquisition. Sun's shareholders' equity is $3,000,000 including $2,160,000 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 recognred as a result of the acquisition and its allocation to the controlling and noncontrolling interests ilwers 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 $ Paramount's share of goodwill $ Noncontrolling interest's share of goodwill $ 3.240,000 2,340,000 X 900,000 x (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 Noncontrolling Interest in Sun$ (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 Credit Debit 0 (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 Noncontrolling interestinsun ument net Deferred taxables Investment in Sun Noncontro Previous Pri Party correct Mark 10 out of 3.00 as question question Consolidation Eliminations Several years after Acquisition Paramount Corporation acquired its 75 percent investment in Sun Corporation in January 2012 for $3.492,000 and accounts for its investment internally using the complete equity method. At the acquisition date, total book value of Sun was $1,800,000 including 5960,000 of retained earnings, and the estimated fair value of the 25 percent noncontrolling interest was $948,000. The fair values of Sun's assets and liabilities were equal to their carrying values, except for the following items Fair valueless Book value Accounts receivable Inventory (150,000) Equipment (10 years, straight line) (480,000) Patents (5 years, straight line) Deferred tax liabilities (created as a result of the nontaxable acquisition 90,000 The receivables were collected and the inventory sold during the first three years following the acquisition. Deferred tax liabilities of 72.000 were reversed during 2012-2017. An impairment test made at the end of 2017 indicates a remaining value of $2,400,000 for the goodwill recognized as a result of the acquisition. Sun's shareholders' equity is $3,000,000 including $2,160,000 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 recognred as a result of the acquisition and its allocation to the controlling and noncontrolling interests ilwers 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 $ Paramount's share of goodwill $ Noncontrolling interest's share of goodwill $ 3.240,000 2,340,000 X 900,000 x (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 Noncontrolling Interest in Sun$ (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 Credit Debit 0 (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 Noncontrolling interestinsun ument net Deferred taxables Investment in Sun Noncontro Previous