The Peregrine Corporation acquired 80 percent of the 100,000 outstanding voting shares of Sprano, Inc., for $7.20 per share on January 1, 2020. The remaining 20 percent of Sprano's shares traded actively at $4.76 per share before and after Peregrine's acquisition. An appraisal made on that date determined that all book values appropriately reflected the fair values of Sprano's underlying accounts except that a building with a 5-year future life was undervalued (i.e., book value is lower than fair value) by $85,500 and a fully amortized trademark (i.e., zero book value) with an estimated 10-year remaining life had a $64,000 fair value. At the acquisition date, Sprano reported common stock of $100,000 and a retained earnings balance of $226,500.

Following are the separate financial statements for the year ending December 31, 2021:

Credit balances are in parentheses. At year-end, there were no intra-entity receivables or payables.

Prepare an acquisition-date fair value allocation schedule. Determine the annual amortization of excess value for the investment in Sprano, the amount of goodwill, if any, and how the goodwill will be allocated between Peregrine and the noncontrolling interest.

Peregrine Corporation $ (641,000) 198,000 273,000 (58,800) $ (228,800) (799,200) (228,800) 70,000 $ (958,000) 121,000 656,000 887,000 149,000 $ 1,813,000 (535,000) (320,000) (958,000) $ (1,813,000) Sales Cost of goods sold Operating expenses Equity income Net income Retained earnings, 1/1 Net income (above) Dividends declared Retained earnings, 12/31 Current assets Investment in Sprano Buildings and equipment (net) Trademarks Total assets Liabilities Common stock Retained earnings, 12/31 (above) Total liabilities and equities Sprano Inc. $ (399,000) 176,000 126,000 -0- $ (97,000) (296,500) (97,000) 20,000 $ (373,500) 120,500 -0- 335,000 236,000 $ 691,500 (218,000) (100,000) (373,500) $ (691,500) $