Problem 4: Consolidations (10 points)
On January 2, Pearl borrowed $60,000 and used the proceeds to purchase 90% of the outstanding common shares of Silver. Pearl had no prior equity interest in Silver. Ten equal principal and interest payments begin on December 30. The excess of the implied fair value of Silver Over the carrying amount of its identifiable net assets should be assigned 60% to inventory and 40% to goodwill. Additionally, the fair value of the noncontrolling interest (NCI) is 10% of the implied fair value of the acquiree.
The following are the balance sheets of Pearl and Silver on January 1:
	Pearl	Silver
Current Assets	70,000	20,000
Non Current Assets	90,000	40,000
Total Assets	160,000	60,000
Current Liabilities	30,000	10,000
Non Current Liabilities	50,000	0
Equity	80,000	50,000
Total Liabilities & Equity	160,000	60,000
On Pearl's January 2 consolidated balance sheet,			Possible Points =	Points You Earned =
	Place Your Answers Below
a) current assets =			2
b) non current assets =			2
c) current liabilities =			2
d) the sum of the non current liabilities and the NCI =			2
e) shareholders equity should be			2
			10	0