Balance sheet information of Pod and Sad Corporations at December 31, 2011, is summarized as follows (in thousands):
On January 2, 2011, Pod purchases 80 percent of Sad’s outstanding shares for $500,000 cash.
REQUIRED
1. Determine goodwill from the acquisition under
(a) Parent-company theory and
(b) Entity theory.
2. Determine noncontrolling interest at January 2, 2011, under
(a) Parent-company theory and
(b) Entity theory.
3. Determine the amount of total assets that would appear on a consolidated balance sheet prepared at January 2, 2011, under
(a) Parent-company theory and
(b) Entitytheory.