PROBLEM 2: (27 points) On January 1, 2016 Lennier Corporation exchanged $344,000 cash for a 90% interest in Talia Corporations outstanding voting stock. Klingons acquisition balance sheet is in the accompanying Excel spreadsheet along with the financial statements for both companies for the year ended December 31, 2018.

On January 1, 2016, Lennier prepared the following fair value allocation schedule:

Consideration transferred by Lennier......................................... 344,000

10% noncontrolling interest fair value....................................... 36,000

Fair value of Talia....................................................................... 380,000

Book value of Talia..................................................................... 324,000

Excess fair value over book value................................................ 56,000

Allocated to equipment (remaining life=9 years).................... 18,000

Allocated to goodwill................................................................ 38,000

Required:

1. Prepare a schedule showing the allocation of the goodwill to the controlling and noncontrolling interest.
2. Prepare a schedule showing Lenniers Equity in Talias Earnings for 2018.
3. Prepare a schedule showing how Lennier determined the $488,900 balance in the Investment in Talia account.