Calculate total goodwill and allocation

Reference no: EM131770955

Question: Date of Acquisition Consolidation Eliminating Entries Pennant Corporation acquired 80 percent of Saylor Company's common stock for $12,000,000 in cash. At the date of acquisition, Saylor's $3,000,000 of reported net assets were fairly stated, except land was undervalued by $200,000 and unrecorded in-process R&D was valued at $1, 500,000. The estimated fair value of the non controlling interest is $2, 600,000 at the acquisition date.

Required: Calculate total goodwill and its allocation to the controlling and non controlling interests.

Prepare the working paper eliminating entries needed to consolidate Pennant and Saylor at the date of acquisition.

Reference no: EM131770955

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