Assignment task: Davis Inc. purchased 75% a controlling interest in Martin Inc. on January 1, 2021 for $450,000, when Martin's common shares and retained earnings were carried at $180,000 and $60,000 respectively. On that date, Martin's book values approximated its fair values, with the exception of the company's inventories and a Patent held by Martin. The patent, which had an estimated remaining useful life of ten years, had a fair value which was $50,000 higher than its book value. Martin's Inventories on January 1, 2015 were estimated to have a fair value that was $16,000 higher than their book value. It was predicted that Martin's goodwill impairment test, which was to be conducted on December 31, 2016, would result in a loss equal to 15% of the goodwill (regardless of the amount) at the date of acquisition being recorded. Martin uses straight-line amortization for all of its assets.
Required:
1. Compute goodwill at the time of acquisition (i.e. January 1, 2021), and goodwill as at December 31, 2022
2. Calculate the NCI share at the date of Acquisition