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Consolidation Working Paper Eliminations, Intercompany Merchandise Sales, Noncontrolling Interest Paymore Shoes acquired 80 percent of the voting stock of Spire Footwear on February 1, 2020, for $21 million. The fair value of the noncontrolling interest at the acquisition date was $3 million. The excess of Spire's fair value over its $4 million book value was attributed to limited-life identifiable intangible assets ( $5 million, 5-year life) and goodwill. Paymore's fiscal year ends January 31 . As of February 1, 2023, the goodwill and identifiable intangibles are not impaired. There is no impairment of either intangible in fiscal 2024. Spire transfers merchandise to Paymore on a regular basis, at a markup of 25% on cost. Following is information on intercompany merchandise transactions for fiscal 2024: - 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 31,2024 , are below. a. Calculate the allocation of goodwill between controlling and noncontrolling interests. Enter answers in thousands. b. Calculate equity in net income, appearing on Paymore's separate books ($440,000), and the noncontrolling interest in net income for fiscal 2024. - Enter answers in thousands ( $440,000 equals $440 in thousands) - Use a negative sign with answers that reduce net income amounts. c. Prepare a working paper to consolidate the January 31, 2024, trial balances of Paymore and Spire. Label your eliminating entries (C),(l),(E),(R),(O), and (N). - Enter answers in thousands ( $440,000 equals $440 in thousands) - Use negative signs with Cr (credit) answers in the Consolidated Balances Dr(Cr) column

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