Consolidation -Goodwill and Consolidated reserves

Whatever the post-acquisition retained earnings in S were, as a result of the depreciation on the fair value adjustment (1/5 x $120,000 = $24,000) that figure for the S post-acq retained earnings will fall by $24,000 and P’s share of S post-acquisition retained earnings will also fall by the P percentage of that $24,000

So the consolidated retained earnings in the question amounting to $400,000 will fall by 75% x $24,000 down to $382,000

Now for the goodwill (I’m going to use ‘pretend’ figures and I’m going to assume that you left off the vital piece of information on purpose! What (I believe) you have omitted to tell me is that the nci is valued on a proportionate basis

Assume the following:

Cost for P’s acquisition was $2,600
NCI is valued on proportionate basis of 25% of S fair valued net assets
S share capital was $2,000
S retained earnings were $1,200

So the original goodwill calculation was as follows:

P cost $2,600
NCI value 25% x ($2,000 + $1,200) = $800
Total S ‘worth’ $3,400

S net assets:
Shares $$2,000
Retained earnings $1,200
Total $3,200

Goodwill $200

After amendment, this calculation reads:

P cost $2,600
NCI value 25% x ($2,000 + $1,200 + $120) = $830
Total S ‘worth’ $3,430

S net assets:
Shares $$2,000
Retained earnings $1,200
Fair value adjustment $120
Total $3,320

Goodwill $110

OK?