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On December 31, 2014, PanTech Company invests $44,000 in SoftPlus, a variable interest entity. In contractual agreements completed on that date, PanTech established itself as the primary beneficiary of SoftPlus. Previously, PanTech had no equity interest in SoftPlus. Immediately after PanTechs investment, SoftPlus presents the following balance sheet:

Cash	$	44,000	Long-term debt	$	96,000
Marketing software		164,000	Noncontrolling interest		132,000
Computer equipment		64,000	PanTech equity interest		44,000
Total assets	$	272,000	Total liabilities and equity	$	272,000

Each of the above amounts represents an assessed fair value at December 31, 2014, except for the marketing software.

a.	If the marketing software was undervalued by $44,000, what amounts for SoftPlus would appear in PanTechs December 31, 2014, consolidated financial statements?

Account	Amount
Cash	????
Long-term debt	????
Marketing software	????
Noncontrolling interest	????
PanTech equity interest	????

Computer equipment	?????
Gain on bargain purchase	?????

On December 31, 2014, PanTech Company invests $44,000 in SoftPlus, a variable interest entity. In contractual agreements completed on that date, PanTech established itself as the primary beneficiary of SoftPlus. Previously, PanTech had no equity interest in SoftPlus. Immediately after PanTechs investment, SoftPlus presents the following balance sheet:

Cash	$	44,000	Long-term debt	$	96,000
Marketing software		164,000	Noncontrolling interest		132,000
Computer equipment		64,000	PanTech equity interest		44,000
Total assets	$	272,000	Total liabilities and equity	$	272,000

Each of the above amounts represents an assessed fair value at December 31, 2014, except for the marketing software.

a.

If the marketing software was undervalued by $44,000, what amounts for SoftPlus would appear in PanTechs December 31, 2014, consolidated financial statements? Account Amount Cash ???? Computer equipment ???? Goodwill ???? Long-term debt ???? Marketing software ???? Noncontrolling interest ???? PanTech equity interest ????

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