On December 31, 2014, PanTech Company invests $20,000 in SoftPlus, a variable interest entity.

On December 31, 2014, PanTech Company invests $20,000 in SoftPlus, a variable interest entity. In contractual agreements completed on that date, PanTech established itself as the primary beneficiary of SoftPlus. Previously, PanTech had no equity interest in SoftPlus. Immediately after PanTech’s investment, SoftPlus presents the following balance sheet:

        Cash$20,000   Long-term debt$120,000   Marketing software 140,000   Noncontrolling interest 60,000   Computer equipment 40,000   PanTech equity interest 20,000   

    Total assets$200,000   Total liabilities and equity$200,000   

Each of the above amounts represents an assessed fair value at December 31, 2014, except for the marketing software.

a.If the marketing software was undervalued by $20,000, what amounts for SoftPlus would appear in PanTech’s December 31, 2014, consolidated financial statements?

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