Panerai Acquired 65% of Stefanel's Voting Stock for $31,550 in Cash

Panerai acquired 65% of Stefanel's voting stock for $31,550 in cash on January 1, 2018, when Stefanel's book value was $5,000. The fair value of the noncontrolling interest at the date of acquisition was $11,450, and all of Stefanel's assets and liabilities were reported at fair value, except for the following items:
$$\begin{array} { | l | c | c | c | } \hline & \begin{array} { c } \text { Date of } \\\text { Acquisition } \\\text { Book value }\end{array} & \begin{array} { c } \text { Date of } \\\text { Acquisition } \\\text { Fair value }\end{array} & \begin{array} { c } \text { Remaining Life } \\\text { at Date of } \\\text { Acquisition }\end{array} \\\hline \text { Plant \& equipment, net } & \$ 20,000 & \$ 4,000 & 16 \text { years } \\\hline \text { Identifiable intangible: Leaseholds } & 0 & 18,000 & 6 \text { years } \\\hline\end{array}$$ The leaseholds meet GAAP requirements for capitalization. All depreciation and amortization is straight-line. There is no impairment of plant & equipment or identifiable intangibles in 2018, 2019, or 2020. Total impairment of goodwill arising from this acquisition to the beginning of 2020 was $2,000. Goodwill impairment for 2020 is $2,500.
You are preparing the consolidated financial statements for 2020. The trial balances of Panerai and Stefanel at December 31, 2020 appear in the consolidation working paper below. Panerai uses the complete equity method to report its investment on its own books.
$\begin{array}{|l|c|c|c|c|c|}\hline & \begin{array}{l}\text { Panerai } \\\operatorname{Dr}(\mathrm{Cr})\end{array} & \begin{array}{l}\text { Stefanel } \\\operatorname{Dr}(\mathrm{Cr})\end{array} & \text { Dr } & \mathrm{Cr} & \begin{array}{l}\text { Consol. } \\\mathrm{Dr}(\mathrm{Cr})\end{array} \\\hline \text { Current assets } & \$ 26,000 & \$ 7,000 & & & \\\hline \text { Plant \& equipment, net } & 140,000 & 90,000 & & & \\\hline \text { Identifiable intangible assets } & \cdots & - & & & \\\hline \text { Investment in Stefanel } & 30,970 & & & & \\\hline \text { Goodwill } &- &- \begin{array}{ll}-- & - \\\end{array} & & & \\\hline \text { Total liabilities } & (148,690) & (81,700) & & & \\\hline \text { Capital stock } & (5,000) & (2,000) & & & \\\hline \text { Retained earnings, beginning } & (25,260) & (6,000) & & & \\\hline \begin{array}{l}\text { Accumulated other comprehensive } \\\text { loss (income), beginning }\end{array} & (850) & 500 & & & \\\hline \text { Noncontrolling interest } & - & - & & & \\\hline \text { Sales revenue } & (150,000) & (50,000) & & & \\\hline \text { Other comprehensive loss (income) } & (275) & 200 & & & \\\hline \text { Equity in income of Stefanel } & (2,025) & - & & & \\\hline \text { Equity in OCL of Stefanel } & 130 & - & & & \\\hline \text { Cost of goods sold } & 120,000 & 30,000 & & & \\\hline \text { Operating expenses } & 15,000 & 12,000 & & & \\\hline \text { Noncontrolling interest in income } & \begin{array}{ll}-- \\\end{array} & - & & & \\\hline \text { Noncontrolling interest in } \mathrm{OCL} &--& \text {-- } & & & \\\hline \text { Total } & \$0& \$0 & & & \\\hline\end{array}$
Required
a. Calculate the total goodwill originally recognized for this acquisition, and its allocation to the controlling interest and the noncontrolling interest.
b. Calculate 2020 equity in net income of Stefanel, reported on Panerai's books, and noncontrolling interest in consolidated net income, reported on the 2020 consolidated income statement.
c. Complete the working paper below to consolidate the December 31, 2020 trial balances of Panerai and Stefanel.
d. Present, in good form, the consolidated statement of income and comprehensive income for 2020.