Why is the answer 0 for b?

Recognition upon initial consolidation of a variable interest entity (VIE) when VIE is a business Assume that prior to January 1, 2013, a Reporting Company owned a 10 percent interest in a Legal Entity. The Reporting Company acquired its 10 percent ownership interest in the Legal Entity on June 15, 1992 for $20,000, and correctly accounted for this investment under the cost method (i.e., it was a passive investment and it was not marketable). On January 1, 2013, the Reporting Company purchased an additional 30 percent interest in the Legal Entity for $150,000. As a result of an evaluation of the facts and circumstances on January 1, 2013, the Reporting Entity determined that the Legal Entity is a variable interest entity (VIE) and that the Reporting Company is the primary beneficiary of the VIE. The Reporting Company also determined that, on January 1, 2013, the fair value of the previously held 10 percent interest is $56,000. In addition, independent appraisals revealed that the fair value of the noncontrolling interest (i.e., the 60 percent not owned by the Reporting Company) is $300,000. On January 1, 2013, the Legal Entity has reported book values for its identifiable net assets equal to $350,000 and fair values for its identifiable net assets equal to $450,000. Assume that the Legal Entity is a "business," as that term is defined in FASB ASC 805 ("Business Combinations"). Related to the initial consolidation of the Legal Entity on January 1, 2013, determine the following amounts: values for its identifiable net assets equal to $. Assume that the Legal Entity is a "business," as that term is defined in FASB ASC 805 ("Business Combinations"). Related to the initial consolidation of the Legal Entity on January 1, 2013, determine the following amounts: Note: Use a negative sign with your answer in part b. to indicate a loss on initial consolidation of Legal Entity, if applicable. Recognition upon initial consolidation of a variable interest entity (VIE) when VIE is a business Assume that prior to January 1, 2013, a Reporting Company owned a 10 percent interest in a Legal Entity. The Reporting Company acquired its 10 percent ownership interest in the Legal Entity on June 15, 1992 for $20,000, and correctly accounted for this investment under the cost method (i.e., it was a passive investment and it was not marketable). On January 1, 2013, the Reporting Company purchased an additional 30 percent interest in the Legal Entity for $150,000. As a result of an evaluation of the facts and circumstances on January 1, 2013, the Reporting Entity determined that the Legal Entity is a variable interest entity (VIE) and that the Reporting Company is the primary beneficiary of the VIE. The Reporting Company also determined that, on January 1, 2013, the fair value of the previously held 10 percent interest is $56,000. In addition, independent appraisals revealed that the fair value of the noncontrolling interest (i.e., the 60 percent not owned by the Reporting Company) is $300,000. On January 1, 2013, the Legal Entity has reported book values for its identifiable net assets equal to $350,000 and fair values for its identifiable net assets equal to $450,000. Assume that the Legal Entity is a "business," as that term is defined in FASB ASC 805 ("Business Combinations"). Related to the initial consolidation of the Legal Entity on January 1, 2013, determine the following amounts: values for its identifiable net assets equal to $. Assume that the Legal Entity is a "business," as that term is defined in FASB ASC 805 ("Business Combinations"). Related to the initial consolidation of the Legal Entity on January 1, 2013, determine the following amounts: Note: Use a negative sign with your answer in part b. to indicate a loss on initial consolidation of Legal Entity, if applicable