Question $8$: On January $1,2015,$ Pomegranate Company acquired $80\%$ of the voting stock of Starfruit Company for $$70,000,000$ in cash. The fair value of the noncontrolling interest in Starfruit at the date of acquisition was $$9,400,000.$ Starfruit's book value was $$11,600,000$ at the date of acquisition. Starfruit's assets and liabilities were reported on its books at values approximating fair value, except its plant and equipment $(10-$year life, straight$-$line$)$ was overvalued by $$13,000,000.$ Starfruit Company had previously unreported intangible assets, with a market value of $$16,000,000$ and $5-$year life, straight$-$line, which were capitalized following GAAP.

Now assume Pomegranate paid only $$11,000,000$ to acquire $80\%$ of Starfruit. The fair value of the noncontrolling interest at the date of acquisition was $$3,000,000.$

At the date of acquisition, consolidation eliminating entry $($R$)$ credits the noncontrolling interest in Starfruit in the amount of

$$6,700,000$

$$4,900,000$

$$3,000,000$

$ $680,000$