1/3/2011 Investment in Simon Corporation $ 525,000

Cash $ 525,000
 Parent Share(80%) NCI Share(20%) Total Value
Purchase price and implied value $ 525,000 $ 131,250 $ 656,250
Less: Book value of subsidiary equity
Common stock $ 400,000 $ 100,000 $ 500,000
Retained earnings $ 80,000 $ 20,000 $ 100,000
Total book value $ 480,000 $ 120,000 $ 600,000

Difference between implied and book v $ 45,000 $ 11,250 $ 56,250

Inventory $ -16,000 $ -4,000 $ -20,000
Other current assets $ - $ - $ -
Marketable securities $ -20,000 $ -5,000 $ -25,000
Plant and equipment $ -24,000 $ -6,000 $ -30,000
Balance (excess of FV over implied valu $ -15,000 $ -3,750 $ -18,750
Patricks's Gain $ 15,000
Increase NCI to fair value of assets $ 3,750
Total allocated gain $ 18,750
Balance $ - $ - $ -