Paint Corporation acquired 80 percent of the stock of Stain Company by issuing shares of its common stock with a fair value of $192,000. At that time, the fair value of the noncontrolling interest was estimated to be $48,000, and the fair values of Stain's identifiable assets and liabilities were $310,000 and $95,000, respectively.

 Paint Corporation acquired 80 percent of the stock of Stain Company by issuing shares of its common stock with a fair value of $192,000. At that time, the fair value of the noncontrolling interest was estimated to be $48,000, and the fair values of Stain's identifiable assets and liabilities were $310,000 and $95,000, respectively. Stain's assets and liabilities had book values of $220,000 and $95,000, respectively.

Required:
Compute the following amounts to be reported immediately after the combination.



Explanation
b.

The amount of goodwill for the entity as a whole will be $25,000

= [($192,000 + $48,000) − ($310,000 − $95,000)].

c.

Noncontrolling interest will be reported at $48,000 = ($240,000 × 0.20).