$*$This is all information provided in question$*$

Consolidation Working Paper, Date of Acquisition

a$.$ Calculate total goodwill and its allocation to the controlling and noncontrolling interests.

Enter answers in thousands. For example, $$43,000,000$ is $$43,000($in thousands$).$

b$.$ Prepare the consolidation working paper at the date of acquisition.

Enter answers in thousands $($ $$2,000,000$ equals $$2,000($in thousands$).$

Use negative signs with your answers in the $\text{'}$Dr $(Cr{)}^{\text{'}}$ columns to indicate a credit balance, when appropriate.

c$.$ Prepare the consolidated balance sheet at the date of acquisition, in good form.

Enter answers in thousands $($ $$38,000,000$ equals $$38,000($in thousands$)$

Do not use negative signs with any of your answers.Consolidation Working Paper, Date of Acquisition

Below are the precombination condensed balance sheets of Princecraft and Sylvan Companies just prior to Princecraft$$s acquisition of $90$ percent of the voting shares of Sylvan for $$46$ million in cash. The book values of Sylvan Company$$s net assets approximate fair value. The noncontrolling interest in Sylvan has a fair value of $$4,000,000.$

Princecraft

Company Sylvan

Company

Cash $$60,000,000$ $$2,000,000$

Other current assets $20,000,0008,000,000$

Property and equipment, net $70,000,00015,000,000$

Total assets $$150,000,000$ $$25,000,000$

Total liabilities $$30,000,000$ $$13,000,000$

Common stock $15,000,0001,000,000$

Additional paid$-$in capital $45,000,0009,000,000$

Retained earnings $60,000,0002,000,000$

Total liabilities and equity $$150,000,000$ $$25,000,000$

Required

a$.$ Calculate total goodwill and its allocation to the controlling and noncontrolling interests.

Enter answers in thousands. For example, $$43,000,000$ is $$43,000($in thousands$).$

Total goodwill Answer $1$

Allocation to controlling interests Answer $2$

Allocation to noncontrolling interests Answer $3$

b$.$ Prepare the consolidation working paper at the date of acquisition.

Enter answers in thousands $($$$2,000,000$ equals $$2,000($in thousands$).$

Use negative signs with your answers in the $"$Dr $($Cr$)"$ columns to indicate a credit balance, when appropriate.

Consolidation Working Paper

Accounts Taken

From Books

Eliminations Consolidated

Balances

$($in thousands$)$

Princecraft

Dr $($Cr$)$ Sylvan

Dr $($Cr$)$ Debit Credit Dr $($Cr$)$

Cash Answer $4$

$$2,000$ Answer $5$

Other current assets Answer $6$

$8,000$ Answer $7$

Property and equipment, net Answer $8$

$15,000$ Answer $9$

Investment in Sylvan Answer $10$

$-$ Answer $11$

$($E$)$ Answer $12$

Answer $13$

$($R$)$

Goodwill Answer $14$

$-($R$)$ Answer $15$

Answer $16$

Total liabilities Answer $17$

$(13,000)$ Answer $18$

Common stock Answer $19$

$(1,000)($E$)$ Answer $20$

Answer $21$

Additional paid$-$in capital Answer $22$

$(9,000)($E$)$ Answer $23$

Answer $24$

Retained earnings Answer $25$

$(2,000)($E$)$ Answer $26$

Answer $27$

Noncontrolling interest Answer $28$

$($E$)$ Answer $29$

Answer $30$

$($R$)$

Total $ $0$ $ $0$ Answer $31$

Answer $32$

Answer $33$

c$.$ Prepare the consolidated balance sheet at the date of acquisition, in good form.

Enter answers in thousands $($$$38,000,000$ equals $$38,000($in thousands$).$

Do not use negative signs with any of your answers.

Consolidated Balance Sheet

Date of Acquisition

$($in thousands$)$

Assets

Cash Answer $34$

Other current assets Answer $35$

Property and equipment, net Answer $36$

Goodwill Answer $37$

Total assets Answer $38$

Liabilities and shareholders$$ equity

Total liabilities Answer $39$

Shareholders$$ equity

Princecraft$$s shareholders$$ equity:

Common stock Answer $40$

Additional paid$-$in capital Answer $41$

Retained earnings Answer $42$

Total Princecraft$$s shareholders$$ equity Answer $43$

Noncontrolling interest Answer $44$

Total shareholders$$ equity Answer $45$

Total liabilities and shareholders$$ equity Answer $46$