The balance sheets of Prima Ltd. and Donna Corp. on December 31, Year 5, are shown below:

	Prima			Donna
Cash	$	374,250		$	10,700
Accounts receivable		84,250			26,900
Inventory		100,500			69,700
Plant		515,000			166,200
Patents		104,500			26,900
	$	1,178,500		$	300,400
Current liabilities	$	165,000		$	36,500
Long-term debt		262,500			68,500
Common shares		357,000			102,500
Retained earnings		394,000			92,900
	$	1,178,500		$	300,400

The fair values of the identifiable net assets of Donna Corp. on this date are as follows:

Cash	$	10,700
Accounts receivable		23,000
Inventory		90,000
Plant		198,000
Trademarks		35,000
Patents		62,500
Current liabilities		36,500
Long-term debt		79,000

In addition to the assets identified above, Donna owned a significant number of Internet domain names, which are unique alphanumeric names used to identify a particular numeric Internet address. These domain names can be sold separately and are estimated to be worth a total of $59,000.

On January 1, Year 6, Prima Ltd. paid $323,000 in cash to acquire 80% of the common shares of Donna Corp.

Required:

(a) Prepare the consolidated balance sheet on January 1, Year 6, under the fair value enterprise method.

(b) Now assume that an independent business valuator valued the NCI at $86,000 at the date of acquisition. What amount would be reported as goodwill? (Omit $ sign in your response.)

Goodwill $

(c) Assume that Prima is a private entity, uses ASPE, and chooses to use the cost method to account for its investment in Donna. Prepare Primas January 1, Year 6, separate-entity balance sheet after the business combination.

(d) Prepare the consolidated balance sheet using the worksheet approach. (Omit $ sign in your response. Values in the first two columns and last column (the "parent", "subsidiary" and "consolidated" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Entry" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Leave no cells blank - be certain to enter "0" wherever required.)

Consolidated Financial Statement Working Paper
Prima Ltd.
Consolidated Balance Sheet
January 1, Year 6
				Entries
	Prima	Donna		Dr.		Cr.	Consolidated
Cash	$	$		$		$	$
Accounts receivable
Inventory
Plant
Trademarks
Patents
Investment in Donna Corp.
Acquisition differential
Domain names
Goodwill
	$	$					$
Liabilities:
Current liabilities	$	$					$
Long-term debt
Shareholders equity:
Common shares
Retained earnings
Non-controlling interest
Total	$	$		$		$	$