The statements of financial position $($SFP$)$ of AX Inc. and BY Ltd$.$ on December $31,$ Year$-1$ were

as follows:

On December $31,$ Year$-1$ AX acquired shares$)$ of BY$\text{'}$S common shares for $$80,000,$

plus an agreement to pay an additional $$80,000$ if the company sales grew by more than $20\%$ over

the next two years. An independent business valuator valued this contingent consideration at

$$20,000,$ had this been paid at the date of acquisition itself. At this date, just before the acquisition

BY$\text{'}$s shares were trading for $$9$ per share.

Additional information $-$ Direct costs of acquisition were $$8,000.$ An unreported new patent by

BY Inc. was valued at $$3,000.$

Required:

Calculate consolidated goodwill and prepare the consolidated statement of financial

position at the date of acquisition under each of the following:

Identifiable net assets $($INA$)$ method

Fair value enterprise $($FVE$)$ method

Calculate consolidated goodwill at the date of acquisition under the proportionate

consolidation method.

Prepare the journal entries $($ONLY$)$ under the Worksheet approach $($FVE Method$).$