PLEASE ANSWER PART B

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Exercise 5-1 On January 1, 2013, Pam Company purchased an 85% interest in Shaw Company for $537,200. On this date, Shaw Company had common stock of $397,600 and retained earnings of $139,600. An examination of Shaw Company's assets and liabilities revealed that their book value was equal to their fair value except for marketable securities and equipment: Marketable securities Equipment (net) Book Value $20,100 119,100 Fair Value $44,800 141,100 (a) Your answer is correct. Prepare a Computation and Allocation Schedule for the difference between book value of equity acquired and the value implied by the purchase price. (Round answers to o decimal places, e.g. 5,125.) Parent Share Non- Controlling Share Entire Value Purchase Price and Implied Value 537200 94800 632000 Less Book Value of Equity Acquired Common Stock 337960 59640 397600 Retained Earnings 118660 20940 139600 Total Book Value 456620 80580 537200 Difference Between Implied and Book Value v 80580 14220 94800 Marketable Securities 20995 3705 24700 Equipment 18700 3300 22000 Balance 40885 7215 48100 Goodwill (40885) (7215) (48100) Balance 0 0 $U (b) x Your answer is incorrect. Try again. Determine the amounts at which the above assets (plus goodwill, if any) will appear on the consolidated balance sheet on January 1, 2013. Marketable securities Equipment (net) Goodwill