Pennant Corporation acquired 80 percent of Saylor Company's common stock for $10,000,000 in cash on January 2,2013.

Question:

Pennant acquired 80 percent of Saylor Company's for $10,000,000 in cash on January 2,2013. At that date, Saylor's $6,000,000 of reported net assets were fairly stated, except land was undervalued by $500,000 and unrecorded in-process R&D was valued at $1,000,000. The estimated fair value of the non-controlling interest is $2,000,000 at the acquisition date.
Required
a. Calculate total and its allocation to the controlling and non-controlling interests.
b. Prepare the working paper eliminating entries needed to consolidate Pennant and Saylor on January 2, 2013. Goodwill
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