Equity in Net Income and Noncontrolling Interest in Net Income At the beginning of the current...

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Equity in Net Income and Noncontrolling Interest in Net Income At the beginning of the current year, Packwild Tours Inc. acquired 60 percent of Snowbird Resorts' common stock for $45 million in cash and stock. The estimated fair value of the noncontrolling interest was $20 million. At the date of acquisition, Snowbird's equity accounts consisted of capital stock of $19 million and a retained earnings deficit of $4 million. Snowbird reports its identifiable net assets at amounts approximating fair value, with these exceptions. land is undervalued by $1.0 million, property (20-year remaining life) is overvalued by $5.0 million, and previously unreported technology with an indefinite life was valued at $10.0 million. For the year following acquisition, Snowbird reports net income of $80,000. Impairment testing reveals $200,000 in impairment on the technology but no impairment of other assets. Packwild reports its investment in Snowbird on its own books using the complete equity method Note: Enter all zeros with your numerical answers, do not abbreviate your answers in thousands or in millions. a. Calculate the amount of goodwill originally reported for this acquisition. $16,000,000 b. Calculate equity in net income for the current year, reported on Packwild's books, and the noncontrolling interest in Snowbird's income, reported on the consolidated income statement. Note: Use negative signs with answers that reduce net income amounts. Equity in NI Noncontrolling Interest in NI Total Snowbird's reported net income $ 80,000 $ 48,000 $ 32,000 Revaluation write-offs: Property $ 5,000,000 x $ 3,000,000 x $ 2,000,000 x Technology $ $ 200,000 x $ 0 x $ 120,000 x $ 0 * $ 80,000 x 0x Equity in Net Income and Noncontrolling Interest in Net Income At the beginning of the current year, Packwild Tours Inc. acquired 60 percent of Snowbird Resorts' common stock for $45 million in cash and stock. The estimated fair value of the noncontrolling interest was $20 million. At the date of acquisition, Snowbird's equity accounts consisted of capital stock of $19 million and a retained earnings deficit of $4 million. Snowbird reports its identifiable net assets at amounts approximating fair value, with these exceptions. land is undervalued by $1.0 million, property (20-year remaining life) is overvalued by $5.0 million, and previously unreported technology with an indefinite life was valued at $10.0 million. For the year following acquisition, Snowbird reports net income of $80,000. Impairment testing reveals $200,000 in impairment on the technology but no impairment of other assets. Packwild reports its investment in Snowbird on its own books using the complete equity method Note: Enter all zeros with your numerical answers, do not abbreviate your answers in thousands or in millions. a. Calculate the amount of goodwill originally reported for this acquisition. $16,000,000 b. Calculate equity in net income for the current year, reported on Packwild's books, and the noncontrolling interest in Snowbird's income, reported on the consolidated income statement. Note: Use negative signs with answers that reduce net income amounts. Equity in NI Noncontrolling Interest in NI Total Snowbird's reported net income $ 80,000 $ 48,000 $ 32,000 Revaluation write-offs: Property $ 5,000,000 x $ 3,000,000 x $ 2,000,000 x Technology $ $ 200,000 x $ 0 x $ 120,000 x $ 0 * $ 80,000 x 0x