Palmer, a U The Identifiable Intangible Meets the GAAP Requirements for Capitalization

Palmer, a U.S. company, acquired 90% of Scala's voting stock for $32,600 in cash on January 1, 2019, when Scala's book value was $5,000. The fair value of the noncontrolling interest at the date of acquisition was $2,400. At the date of acquisition, all of Scala's assets and liabilities were reported at fair value, except for the following items:
$$\begin{array} { | l | c | c | c | } \hline & \begin{array} { c } \text { Date of } \\\text { Acquisition } \\\text { Book Value }\end{array} & \begin{array} { c } \text { Date of } \\\text { Acquisition } \\\text { Fair Value }\end{array} & \begin{array} { c } \text { Remaining Life } \\\text { at Date of } \\\text { Acquisition }\end{array} \\\hline \text { Plant assets } & \$ 20,000 & \$ 8,000 & 12 \text { years } \\\hline \text { Identifiable intangible: Leaseholds } & 0 & 20,000 & 5 \text { years } \\\hline\end{array}$$ The identifiable intangible meets the GAAP requirements for capitalization. All depreciation and amortization is straight-line. There is no impairment of plant & equipment or identifiable intangibles in 2019, 2020 or 2021.
Total impairment of goodwill arising from this acquisition for the years 2019 and 2020 is $3,000. Goodwill impairment for 2021 is $1,000.
Scala sells inventory to Palmer at a markup of 20% on cost. Here is information on inventory transactions for 2021. Note that the amounts are the balances reported on the books, so you need to calculate markups as appropriate.
$$\begin{array} { | l | r | } \hline & \text { Balance } \\\hline \text { Inventory on Palmer's books, acquired from Scala, as of January 1, 2021 } & \$ 2,880 \\\hline \text { Inventory on Palmer's books, acquired from Scala, as of December 31, 2021 } & 3,600 \\\hline \text { Total sales from Scala to Palmer, at price charged to Palmer, for 2021 } & 25,000 \\\hline\end{array}$$ You are preparing the consolidated financial statements for 2021 (third year since acquisition). The trial balances of Palmer and Scala at December 31, 2021, collected from the books of Palmer and Scala, are in the consolidation working paper below. Palmer uses the complete equity method to report its investment on its own books.
Required
a. Calculate the total goodwill originally recognized for this acquisition, and its allocation to the controlling interest and the noncontrolling interest.
b. Calculate 2021 equity in net income of Scala, reported on Palmer's books, and noncontrolling interest in consolidated net income, reported on the 2021 consolidated income statement.
c. Fill in the working paper to consolidate the December 31, 2021 trial balances of Palmer and Scala. Clearly label eliminating entries (C), (I), (E), (R), (O), and (N).
d. Prepare the consolidated income statement and consolidated statement of comprehensive income for 2021, and the consolidated balance sheet for December 31, 2021.