Paint Corporation acquired 60 percent of the stock of Stain Company by issuing shares of its common stock with a fair value of $142,200. At that time, the fair value of the noncontrolling interest was estimated to be $94,800, and the fair values of Stains identifiable assets and liabilities were $303,000 and $96,000, respectively. Stains assets and liabilities had book values of $229,000 and $96,000, respectively. Required:
Compute the following amounts to be reported immediately after the combination.

a. Investment in Stain reported by Paint
b. Goodwill for the combined entity
c. Noncontrolling interest reported in the consolidated balance sheet

a. Investment in Stain reported by paint would be $142,200 which is the fair value of common stock issued.

b. Fair value of common stock                                 $142,200

Add: Fair value of non controlling interest              $94,800

Less: Fair value of assets - Fair value of liabilities  $208,000

(Assets - Liabilities) ($304,000 - $96,000)  

Goodwill                                                                     $29,000

c. Non-controlling Interest = 40% of [Fair value of common stock + Fair value of non controlling interest]

Non-controlling Interest = 40% of [$142,200 + $94,800]

Non-controlling Interest = 40% of $237,000

Non-controlling Interest = $94,800

answer/// product differentiation;