Consolidation Eliminating Entries, Date Of Acquisition And Two Years Later Plaza Hotels Acquired A 90 Percent Interest In Stardust Casinos On January 1, 2020 For $51,100,000. The Fair Value Of The 10 Percent Noncontrolling Interest At The Date Of Acquisition Was $2,900,000. Stardust’s Date-Ofacquisition Reported Net Assets Were Carried At Amounts

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Consolidation Eliminating Entries, Date of Acquisition and Two Years Later
Plaza Hotels acquired a 90 percent interest in Stardust Casinos on January 1, 2020 for $51,100,000. The fair value of the 10 percent noncontrolling interest at the date of acquisition was $2,900,000. Stardust’s date-ofacquisition reported net assets were carried at amounts approximating fair value, except for these items:
• Plant and equipment, 10-year life, straight-line, is overvalued by $6,000,000.
• Previously unrecorded limited-life identifiable intangibles, 4-year life, straight-line, were valued at $8,000,000.
Stardust’s equity accounts at the date of acquisition were as follows:
Capital stock	$300,000
Retained earnings	1,650,000
Accumulated other comprehensive income	50,000
Total	$2,000,000
Stardust reports net income of $4,000,000 and other comprehensive loss of $10,000 for 2021. Stardust reported net income of $2,800,000 and other comprehensive income of $25,000 in 2020. Stardust did not declare any dividends in either year. Goodwill from this acquisition is impaired by $200,000 during 2021, but was not impaired in 2020.
Required
a. Calculate the original goodwill for this acquisition and its allocation to controlling and noncontrolling interests. In what ratio is goodwill allocated between controlling and noncontrolling interests?
Enter your answers in thousands ($51,100,000 equals $51,100 in thousands).
Enter your ratio answers in percentages.
		Amount	Ratio
Total goodwill		$Answer
Allocation to controlling interests		Answer	Answer%
Allocation to noncontrolling interests		Answer	Answer%
b. Prepare the consolidation eliminating entries (E) and (R) at the date of acquisition.
Enter your answers in thousands ($51,100,000 equals $51,100 in thousands).
Ref.	Description		Debit	Credit
(E)	Capital stock
	Retained earnings
Accumulated other comprehensive income, OR Equity in net income,OR Equity in other comprehensive loss,OR Goodwill, OR Identifiable Intangible, OR Investment in Stardust, OR non controlling interest in net income, OR Noncontrolling interest in OCL, OR noncontrolling interest in Stardust, OR Plant and Equipment	?
	Investment in Stardust
Accumulated other comprehensive income, OR Equity in net income,OR Equity in other comprehensive loss,OR Goodwill, OR Identifiable Intangible, OR Investment in Stardust, OR non controlling interest in net income, OR Noncontrolling interest in OCL, OR noncontrolling interest in Stardust, OR Plant and Equipmen	?
(R)	Identifiable intangibles
Accumulated other comprehensive income, OR Equity in net income,OR Equity in other comprehensive loss,OR Goodwill, OR Identifiable Intangible, OR Investment in Stardust, OR non controlling interest in net income, OR Noncontrolling interest in OCL, OR noncontrolling interest in Stardust, OR Plant and Equipmen	?
Accumulated other comprehensive income, OR Equity in net income,OR Equity in other comprehensive loss,OR Goodwill, OR Identifiable Intangible, OR Investment in Stardust, OR non controlling interest in net income, OR Noncontrolling interest in OCL, OR noncontrolling interest in Stardust, OR Plant and Equipmen	?
	Investment in Stardust
	Noncontrolling interest in Stardust
c. Prepare the consolidation eliminating entries (C), (E), (R), (O) and (N) at December 31, 2021.
Enter your answers in thousands, using decimals if appropriate ($39,400 equals $39.4 in thousands).
Ref.	Description		Debit	Credit
(C)Accumulated other comprehensive income, OR Equity in net income,OR Equity in other comprehensive loss,OR Goodwill, OR Identifiable Intangible, OR Investment in Stardust, OR non controlling interest in net income, OR Noncontrolling interest in OCL, OR noncontrolling interest in Stardust, OR Plant and Equipmen	?
Accumulated other comprehensive income, OR Equity in net income,OR Equity in other comprehensive loss,OR Goodwill, OR Identifiable Intangible, OR Investment in Stardust, OR non controlling interest in net income, OR Noncontrolling interest in OCL, OR noncontrolling interest in Stardust, OR Plant and Equipmen	?
	Investment in Stardust
(E)	Capital stock
	Retained earnings, beg.
Accumulated other comprehensive income, OR Equity in net income,OR Equity in other comprehensive loss,OR Goodwill, OR Identifiable Intangible, OR Investment in Stardust, OR non controlling interest in net income, OR Noncontrolling interest in OCL, OR noncontrolling interest in Stardust, OR Plant and Equipmen	?
Accumulated other comprehensive income, OR Equity in net income,OR Equity in other comprehensive loss,OR Goodwill, OR Identifiable Intangible, OR Investment in Stardust, OR non controlling interest in net income, OR Noncontrolling interest in OCL, OR noncontrolling interest in Stardust, OR Plant and Equipmen	?
	Noncontrolling interest in Stardust
(R)	Identifiable intangibles
Accumulated other comprehensive income, OR Equity in net income,OR Equity in other comprehensive loss,OR Goodwill, OR Identifiable Intangible, OR Investment in Stardust, OR non controlling interest in net income, OR Noncontrolling interest in OCL, OR noncontrolling interest in Stardust, OR Plant and Equipmen	?
Accumulated other comprehensive income, OR Equity in net income,OR Equity in other comprehensive loss,OR Goodwill, OR Identifiable Intangible, OR Investment in Stardust, OR non controlling interest in net income, OR Noncontrolling interest in OCL, OR noncontrolling interest in Stardust, OR Plant and Equipmen	?
	Investment in Stardust
	Noncontrolling interest in Stardust
(O)	Operating expenses
Accumulated other comprehensive income, OR Equity in net income,OR Equity in other comprehensive loss,OR Goodwill, OR Identifiable Intangible, OR Investment in Stardust, OR non controlling interest in net income, OR Noncontrolling interest in OCL, OR noncontrolling interest in Stardust, OR Plant and Equipmen	?
Accumulated other comprehensive income, OR Equity in net income,OR Equity in other comprehensive loss,OR Goodwill, OR Identifiable Intangible, OR Investment in Stardust, OR non controlling interest in net income, OR Noncontrolling interest in OCL, OR noncontrolling interest in Stardust, OR Plant and Equipmen	?
	Goodwill
(N)Accumulated other comprehensive income, OR Equity in net income,OR Equity in other comprehensive loss,OR Goodwill, OR Identifiable Intangible, OR Investment in Stardust, OR non controlling interest in net income, OR Noncontrolling interest in OCL, OR noncontrolling interest in Stardust, OR Plant and Equipmen	?
Accumulated other comprehensive income, OR Equity in net income,OR Equity in other comprehensive loss,OR Goodwill, OR Identifiable Intangible, OR Investment in Stardust, OR non controlling interest in net income, OR Noncontrolling interest in OCL, OR noncontrolling interest in Stardust, OR Plant and Equipmen	?
	Noncontrolling interest

Answer rating: 100% (QA)

Calculation of Goodwill Acquisition Cost 51100000 Fair Value of Non Controlling Interest 2900000 Tot... View the full answer