Proline Company acquired $70$ percent of Saturn Corporation$$s common stock for $$113$ million in cash and stock. The estimated fair value of the noncontrolling interest was $$38$ million. At the date of acquisition, Saturn$$s book value was $$22\mathrm{.}522\mathrm{.}500000$ million, consisting of capital stock of $$75,000,$ additional paid$-$in capital of $$24\mathrm{.}3$ million, accumulated other comprehensive loss of $$375,000,$ and treasury stock of $$1\mathrm{.}5$ million. Saturn reports its identifiable net assets at amounts approximating fair value, with these exceptions: property is overvalued by $$38$ million, deferred tax liabilities resulting from the acquisition are $$4$ million, previously unreported identifiable intangibles have a fair value of $$15$ million, and Saturn has $$8$ million of goodwill on its books from a previous acquisition.

a$.$ Calculate total goodwill for this acquisition and its allocation to the controlling and noncontrolling interests.

Total goodwill: Answer

Goodwill to Proline $($controlling interest$)$: Answer

$0$

Goodwill to non$-$controlling interests: Answer

$0$

b$.$ Prepare the working paper eliminating entries needed to consolidate the accounts of Proline and Saturn at the date of acquisition.

Debit Credit

$($E$)$

$0$

$0$

Answer

$0$

$0$

Answer

$0$

$0$

Answer

$0$

$0$

Answer

$0$

$0$

Answer

$0$

$0$

Answer

To eliminate the subsidiary's equity accounts

$($R$)$

$0$

$0$

Answer

$0$

$0$

Answer

$0$

$0$

Answer

$0$

$0$

Answer

$0$

$0$

Answer

$0$

$0$

Answer

$0$

$0$

Answer

To revalue subsidiary's assets and liabilities to fair value