Supplemental Problem 5-1 Parent Co. Purchases 80% of the 10,000 shares issued and outstanding of Sub, Inc.'s stock when the book value of Sub's net assets was $50,000 and the fair value was $60,000. Required: Prepare the schedule of Goodwill the following four independent cases. Use the format shown below. Case 1: Parent buys @ $10/share when the market price of the stock is $ 10. Case 2: Parent buys @$12/share when the market price of the stock is $ 10. Case 3: Parent buys @ $10/share when the market price of the stock is $5.50. Case 4: Parent buys @ $18/share when the market price of the stock is $5. Case 5: Parent buys @$4/share when the market price of the stock is $ 10. Less Book Value Purchased Case 1 Total 50,000 Parent 40,000 10,009. Noncontrolling Interest Purchase Price/Fair Value 100,000 80,000 20,000 Less Book Value Purchased 50,000 40,000 10,000 Purchase Premium/Discount 50,000 40,000 10,000 Allocate AFMV & BV 60,000 48,000 12,000 Goodwill -10,000 8,000 -2,000 Apportionment 0.8 0.2 Case 2 Total Parent Noncontrolling Interest Purchase Price/Fair Value 116,000 96,000 20,000 Less Book Value Purchased 50,000 40,000 10,000 Purchase Premium/Discount 66,000 56,000 10,000 Allocate AFMV & BV 60,000 50,000 10,000 Goodwill 6,000 6,000 Apportionment Case 3 Total Parent Noncontrolling Interest Purchase Price/Fair Value 91,000 80,000 11,000 Less Book Value Purchased 50,000 40,000 10,000 Purchase Premium/Discount 41,000 40,000 1,000 Allocate AFMV & BV 60,000 59,000 1,000 Goodwill (19,000) 19,000 Apportionment 1 Case 4 Total Parent Noncontrolling Interest