Rendezvous Resorts is a Swiss company with an 80 percent interest in Monaco Hotels, located in France. Rendezvous acquired its interest in Monaco on January l, 2012, for ‚¬4 billion. Monaco's book value at the date of acquisition was ‚¬l billion. Monaco's balance sheet reported its assets and liabilities at fair value, except for these items:
€¢ Inventories (FIFO) were overvalued by ‚¬100 million.
€¢ Property, plant and equipment (10 year life, straight-line) was undervalued by ‚¬400 million.
€¢ Previously unreported identifiable intangibles (3 year life, straight-line) had a fair value of ‚¬300 million. These intangibles meet the IFRS criteria for capitalization.
It is now December 31, 2013. Rendezvous uses the complete equity method to account for its investment in Monaco on its own books and prepares consolidated financial statements using IFRS. Goodwill impairment losses were ‚¬100 million in 2012 and ‚¬200 million in 2013. The trial balances of Rendezvous and Monaco at December 31,2013, are as follows:

Required
a. Calculate the total goodwill initially arising from this acquisition, using the IFRS alternative method of valuation.
b. Prepare a schedule calculating Rendezvous' equity in net income of Monaco and the noncontrolling interest in Monaco's net income for 2013.
c. Prepare a working paper consolidating the trial balances of Rendezvous and Monaco at December 31, 2013.

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Dr (Cr) Rendezvous Resorts Monaco Hotels fin millions) Current assets ..aa Property, plant and equipment, net... 500 3,000 4,316 900 2,000 200 (1,150) (800) (600) 50 (3,500) Identifiable intangibles (4,648) (1,500) .(1,000) Capital stock Retained earnings, January 1·. Dividends. Sales revenue. (5,000) (168) 4,200 300 2,500 400 Administrative and other operating expenses Totals 0 0