*The implied value of Revsine is $1,500,000 ($1,050,000/.70).The implied value exceeds the $1,200,000 book value by $300,000.The $300,000 differential is partially explained by the land differential of $175,000 and the inventory differential of $75,000;therefore Goodwill must be $57,500 ($300,000 - $175,000 - $67,500).
2.The noncontrolling interest of $450,000 [($1,050,000/.70).30] is reported as a component of stockholders' equity on the consolidated balance sheet.