Question: The balance sheets of Prima Ltd and Donna Corp on

The balance sheets of Prima Ltd. and Donna Corp. on December 31, Year 5, are shown below:
The fair values of the identifiable net assets of Donna Corp. on this date are as follows:
Cash ........... $ 6,400
Accounts receivable ..... 20,000
Inventory .......... 85,000
Plant ........... 192,000
Trademarks ......... 30,000
Patents ........... 60,000
Current liabilities ...... 32,000
Long-term debt ...... 70,000
In addition to the assets identified above, Donna owned a significant number of Internet domain names, which are unique alphanumeric names that are used to identify a particular numeric Internet address. These domain names can be sold separately and are estimated to be worth $50,000. On January 1, Year 6, Prima Ltd. paid $351,000 in cash to acquire 90% of the common shares of Donna Corp.
(a) Prepare the consolidated balance sheet on January 1, Year 6, under entity theory.
(b) Now assume that an independent business valuator valued the NCI at $35,000 at the date of acquisition. What accounts on the consolidated balance would change, and at what amount would they be reported?
(c) Assume that Prima is a private entity, uses ASPE, and chooses to use the cost method to account for its investment in Donna. Prepare Prima's January 1, Year 6, separate-entity balance sheet after the business combination.

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