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Consolidated Financial Statements: Intercompany Transactions E6.14 Consolidation Working Paper Eliminations, Intercompany Merchandise Sales, Noncon. trolling Interest Paymore Shoes acquired 80 percent of the voting stock of Spire Footwear on Feb ruary 1,2017, for $21 million. The fair value of the noncontrolling interest at the acquisition date $3 million. The excess of Spire's fair value over its $4 million book value was attributed to limited-I identifiable intangible assets ($5 million, 5-year life) and goodwill. Paymore's fiscal year ends Janu 31. As of February 1, 2020, the goodwill and identifiable intangibles are not impaired. There is no i pairment of either intangible in fiscal 2021. Spire transfers merchandise to Paymore on a regular ba at a markup of 25% on cost. Following is information on intercompany merchandise transactions f fiscal 2021 * Balance in Paymore's beginning inventory, purchased from Spire, $1,000,000 Balance in Paymore's ending inventory, purchased from Spire, $750,000 Total sales from Spire to Paymore, at the price charged to Paymore, $25 million. Paymore uses the complete equity method to account for its investment in Spire on its own books. The separate trial balances for Paymore and Spire at January 31, 2021, are belovw Paymore Spire Dr (Cr) (in thousands) Dr (Cr) Current assets Plant and equipment, net Intangibles Investment in Spire... $ 10,000 1,200,000 101,360 22,080 (945,000) (28,000) (340,000) (1,200,000) (440) 980,000 200,000 0 4,500 750,000 Liabilities Capital stock (745,000) (3,000 (5,000 (300,000) Sales revenue. Equity in net income.. Cost of sales... Operating expenses. .. Total. 200,000 98,500 Required a. Calculate the allocation of goodwill between controlling and noncontrolling interests. b. Calculate equity in net income.appearing on Paymore's separate books ($5440,000), and the on Paymore's separate books ($440,000), and the Prepare a working paper to consolidate the January 31, 2021, trial balances of Paymorea Label your eliminating entries (C).D.(E).(R).(O), and (N) and Spire

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