The balance sheets of Prima Ltd. and Donna Corp. on December 31, Year 5, are shown below:

The fair values of the identifiable net assets of Donna Corp. on this date are as follows:
Cash ........... $ 6,400
Accounts receivable ..... 20,000
Inventory .......... 85,000
Plant ........... 192,000
Trademarks ......... 30,000
Patents ........... 60,000
Current liabilities ...... 32,000
Long-term debt ...... 70,000
In addition to the assets identified above, Donna owned a significant number of Internet domain names, which are unique alphanumeric names that are used to identify a particular numeric Internet address. These domain names can be sold separately and are estimated to be worth $50,000. On January 1, Year 6, Prima Ltd. paid $351,000 in cash to acquire 90% of the common shares of Donna Corp.
Required:
(a) Prepare the consolidated balance sheet on January 1, Year 6, under entity theory.
(b) Now assume that an independent business valuator valued the NCI at $35,000 at the date of acquisition. What accounts on the consolidated balance would change, and at what amount would they be reported?
(c) Assume that Prima is a private entity, uses ASPE, and chooses to use the cost method to account for its investment in Donna. Prepare Prima's January 1, Year 6, separate-entity balance sheet after the business combination.

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Prima Donna Cash Accounts receivable Inventory Plant Patents $370,000 80,000 96,000 510,000 100,000 $1,156,000 $ 6,400 22,400 67,200 163,200 22,400 $281,600 Current liabilities Long-term debt Common shares Retained earnings $160,000 256,000 352,000 388,000 $1,156,000 32,000 64,000 96,000 89,600 $281,600