Reporting of Equity in Consolidation Paris Cosmetics purchasedall of the of the ordinary shares of All Mineral Company for Cashon January 1, 2019. The separate balance sheets of the twocorporations before consolidation appeared as follows (notnecessarily in order):

During purchase negotiations, Paris Cosmetics determined theappraised value of All Minerals Patents were €20,000 and theirinventory was 19,500; and all of the remaining assets andliabilities were appraised at values approximating their bookvalues.

	Paris Cosmetics	All Minerals	Consolidating Adjustments	Consolidated
Investment in All Minerals	700,000	------
PPE, net	1,150,000	500,000
Inventory	740,000	21,500
Accounts Payable	400,000	125,000
Share Capital-- Ordinary	1,400,000	300,000
Accounts Receivable	165,000	95,000
Patents	20,000	15,000
Cash	?	?
Note Payable	500,000	35,000
Goodwill	------	-----
Retained earnings	600,000	240,000

During purchase negotiations, Paris Cosmetics determined theappraised value of All Minerals Patents were €20,000 and theirinventory was 19,500; and all of the remaining assets andliabilities were appraised at values approximating their bookvalues.

1. Determine how much will be ascribed to goodwill? (Hint: What isthe definition of goodwill?) (5 points)
2. Prepare the consolidated Balance Sheet. Use the EU version ofIFRS. Order is important. (10 points)
3. Prepare journal entry to record transactions