Question: Date of Acquisition Consolidation Eliminating Entries Pennant Corporation acquired 80 percent of Saylor Company's common stock for $12,000,000 in cash. At the date of acquisition, Saylor's $3,000,000 of reported net assets were fairly stated, except land was undervalued by $200,000 and unrecorded in-process R&D was valued at $1, 500,000. The estimated fair value of the non controlling interest is $2, 600,000 at the acquisition date.

Required: Calculate total goodwill and its allocation to the controlling and non controlling interests.

Prepare the working paper eliminating entries needed to consolidate Pennant and Saylor at the date of acquisition.