P 1 37 Finder s fee paid to firm that located Light Steel 10 000 Legal fees paid to assist in transfer of net assets 9 000 Merger total 19 000 Record finder s fee and transfer costs Merger expense 19 000 Cash 19 000 Audit fee for stock issue by PURE Products 3 000 Stock registration fee for new shares of PURE Products 5 000 Cost of SEC registration of PURE Products shares 1 000 Deferred stock issue 9 000 Record audit fees and stock registration fees Deferred Stock Issue Costs 9 000 Cash 9 000 Goodwill calculation Fair value of consideration given 12 000x50 600 000 Fair value of net identifiable assets acquired 695 000 10 000 180 000 505 000 Goodwill 95 000 Additional paid in capital 50 10 x 12 000 9 000 471 000 Cash 60 000 Accounts Receivable 100 000 Inventory Land 115 000 70 000 Building Equipment 350 000 Bonds discount Goodwill 20 000 95 000 Account Payable Bonds Payable Common Stock Additional Paid in capital Deferred Stock Issue costs 9 000 10 000 200 000 120 000 471 000 P 3 31 Balance in investment account December 31 207 259 800 Cumulative earnings since acquisition 35 000 45 000 30 000 110 000 Cumulative dividends since acquisition 12 000 20 000 14 000 46 000 Net assets on December 31 20x7 64 000 Differential December 31 20x7 x 75 48 000 211 800 b 282 400 211 800 0 75 is the fair value of net assets on January 1 20X5 c 70 600 282 400 x 0 25 is the value assigned to the NCI shareholders on January 1 20X5 d 86 600 259 800 0 75 x 0 25 will be assigned to non controlling interest in the consolidated balance sheet prepared at December 31 20X7