There is a problem with this problem and the solutions do not address. I have determined that the best way to deal with this is to change up the problem. It should read:
On July 1, 2009, Kaplan acquired 80% of Reckers for $1,304,000 in fair value consideration.
(Remove everything regarding contingent consideration and leave everything else the same.)
The journal entries will be the same then except for A, which will be:
DR: Trademark 150
DR: Goodwill 30
CR: Investment 144
CR: NCI 36
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