Recognition upon initial consolidation of a variable interest entity (VIE) when VIE is a business Assume that prior to January 1, 2019 a Reporting Company owned a 15 percent interest in a legal Entity. The Reporting Company acquired its 15 percent ownershipinterest in the Legal Entity on June 15. 1998 for $45,000, and correctly accounted for this investment under the cost method tie, it was a passive investment and it was not marketable On January 1, 2019, the reporting Company purchased an additional 30 percent interest in the Legal Entity for $180.000. As a result of an evaluation of the facts and circumstances on January 1, 2019 the Reporting Entity determined that the Legal Entity is a variable interest entity (Via) and that the Reporting Company is the primary beneficiary of the VIE The Reporting Company also determined that on January 1 2019 the fair value of the previously held 15 percent interest is 590,000. In addition, independent appraisals revealed that the fair value of the noncontrolling interest (e. the 55 percent not owned by the Reporting Company is $330.000 on January 1, 2019, the legal Entity has reported book values for its identifiable net assets equal to $390.000 and fair values for its identifiable net assets equal to $570,000 Assume that the legal Entity is a business as that term is defined in FASB ASC 805 (Business Combinations Related to the initial consolidation of the legal Entity on January 1, 2019, determine the following amounts Note:Use a negative sign with your answer in part b. to indicate a loss on initial consolidation of Legal Entity, il applicable Account Amount a Goodwill 30,000 Gan (Loss on initialconsolidation of Legal Entity 3 (20.500) E Business Course Return to course Recognition upon initial consolidation of a variable interest entity (VIE) when VIE is not a busines Assume that prior to January 1, 2019, a Reporting Company owned a 15 percent interest in a Legal Entit June 15, 1998 for $45,000, and correctly accounted for this investment under the cost method (i.e., it wa Company purchased an additional 30 percent interest in the Legal Entity for $180,000. As a result of an that the Legal Entity is a variable interest entity (VIE) and that the Reporting Company is the primary be value of the previously held 15 percent interest is $90,000. In addition, independent appraisals revealed Reporting Company) is $330,000. On January 1, 2019, the Legal Entity has reported book values for its i $570,000. Assume that the Legal Entity is not a "business," as that term is defined in FASB ASC 805 ("Business Com determine the following amounts: Note: Use a negative sign with your answer in part b. to indicate a gain on initial consolidation of Legal Account Amount 30,000 x b. (Gain) Loss on initialconsolidation of Legal Entity $ (30,500) x a. Goodwill Cher TACTE business al Entity. The Reporting Company acquired its 15 percent ownership interest in the Legal Entity on e., it was a passive investment and it was not marketable). On January 1, 2019, the Reporting t of an evaluation of the facts and circumstances on January 1, 2019, the Reporting Entity determined mary beneficiary of the VIE. The Reporting Company also determined that, on January 1, 2019, the fair evealed that the fair value of the noncontrolling interest (.e., the 55 percent not owned by the for its identifiable net assets equal to $399,000 and fair values for its identifiable net assets equal to ess Combinations"). Related to the initial consolidation of the Legal Entity on January 1, 2019, of Legal Entity, if applicable. Recognition upon initial consolidation of a variable interest entity (VIE) when VIE is not a business Assume that prior to January 1, 2019, a Reporting Company owned a 15 percent interest in a Legal Entity. The Reporting Comp June 15, 1998 for $45,000, and correctly accounted for this investment under the cost method (le, it was a passive investment Company purchased an additional 30 percent interest in the Legal Entity for $180,000. As a result of an evaluation of the facts that the Legal Entity is a variable interest entity (VIE) and that the Reporting Company is the primary beneficiary of the VIE. The value of the previously held 15 percent interest is $90,000. In addition, independent appraisals revealed that the fair value oft Reporting Company) is $330,000. On January 1, 2019, the Legal Entity has reported book values for its identifiable net assets e $570,000 Assume that the Legal Entity is not a "business," as that term is defined in FASB ASC 805 ("Business Combinations"). Related to determine the following amounts: Note: Use a negative sign with your answer in part b. to indicate a gain on initial consolidation of Legal Entity, if applicable. ccount a. Goodwill 30,000 x b. (Gain) Loss on initialconsolidation of Legal Entity $ (30,500) X Amount $ Cher