Question $2(20$ marks$)$

The balance sheets of Percy Corp. and Saltz Ltd$.$ on December $31,$ Year $10,$ are shown below:

The fair values of the identifiable net assets of Saltz Ltd$.$ on December $31,$ Year $10,$ were as

follows:

In addition to the assets identified above, Saltz owned a taxi licence in the City of Moose Jaw.

This licence expires in nine years. The licences are selling in the open market at approximately

$$45,000.$ On January $1,$ Year $11,$ Percy Corp paid $$200,000$ in cash to acquire $8,000(80\%)$ of the

common shares of Saltz Ltd$.$ Saltz's shares were trading for $$22$ per share just after the

acquisition by Percy.

Required:

Prepare the consolidated balance sheet on January $1,$ Year $11.$ base the value of the noncontrolling

interest on its market value. Show the allocation of the goodwill between the controlling and non$-$

controlling interest.