On January 1, 2020, P company acquires 90 percent of the outstaniding common stock of S company, in exchange for $1,710,

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On January 1, 2020, P company acquires 90 percent of the outstaniding common stock of S company, in exchange for $1,710,000 cash.
At the acquisition date, S company's total fair value, including the noncontrolling interest, was assessed at $1,900,000. Also at the acquisition date,
S company's book value was $725,000.(common stock 400,000, additional paid-in capital 60,000, retained earnings 265,000)
P company observed that S company had developed internally a customer base with an assed fair value of $800,000 that was not reflected on S company's books. The remaining useful life of cutomer base is ten years.
Book value Fair value
Customer base 0 800000
For internal reporting purposes, P company employs the equity method to account for this investment. The following account balances are for the year
ending December 31, 2020, for both companies. At year-end, there were no intra-entity receivables or payables.

P company S company
Revenues ($120,000) ($120,000)
Cost of goods sold 40,000 40,000
Depreciation expense
Amortization expense
Equity in income of Gardena ($121,500) 0
Net income ($437,000) ($215,000)

Retained earnings (1/1/2020) ($330,000) ($265,000)
Net income ($437,000) ($215,000)
Dividends declared 350,000 25,000
Retained earnings (12/31/2020)

Current assets
Investment in S company 1,854,000 0
Trademark
Property and equipment (net)
Patents
Total assets
Accounts payable
Common stock ($900,000) ($400,000)
Additional paid-in capital ($300,000) ($60,000)
Retained earnings (12/31/2020)
Total liabilities and equities

please explain?




1. What is the goodwill of Parent at acquisition?














Your
answer:






fair
value of sub-book value of sub- undervalued FV of customer
base
























2.What is
the amount of Non-Controlling Interest at acquisition
(1/1/2020)?








Your
answer:










































3. The
consolidation JE D to eliminate any dividend earned from Subsidiary
during 2020 (consolidation JE D)




Your
answer:

Dr.






















Cr.




































4. The
consolidation JE S to eliminate subsidiary’s stockholders' equity
at December 31, 2020 (consolidation JE S)