Assume that, on January 1, 2XX1, Kylar Company acquired an 80% interest in Bright Company for...

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Assume that, on January 1, 2XX1, Kylar Company acquired an 80% interest in Bright Company for a purchase price that was $975,000 over the book value of the subsidiary's Stockholders' Equity on the acquisition date. Kylar uses the equity method to account for its investment in Bright. Kylar assigned the acquisition-date AAP as follows: Useful Life AAP Item PPE Patent Initial Fair Value (years) $525,000 10 150,000 5 Customer List Goodwill 225,000 5 75,000 Indefinite $975,000 80% of if the Goodwill is allocated to the parent. Kylar and Bright report the following financial statements December 31, 2XX4: Income Statement Sales Cost of goods sold Gross Profit Income (loss) from subsidiary Operating expenses Net income Statement of Retained Earnings BOY Retained Earnings Net income Dividends EOY Retained Earnings Balance Sheet Assets: Cash Accounts receivable Inventory Equity Investment PPE, net Liabilities and Stockholders' Equity: Current Liabilities Long-term Liabilities Kylar Bright $1,290,000 $1,125.000 (687,000) (645,000) 603,000 480,000 84,000 (237,000) (247.500) 450,000 232,500 1,317,660 630,000 450,000 232,500 (262,500) (18,750) 1,505,160 843,750 82.500 81,000 69,000 36,000 142.500 142,668 1,399.320 432,090 2,809,782 2,125,410 3.069.450 112,500 600,300 225,000 1,185,000 Common Stock 95,250 177,150 APIC Retained Earnings 187,500 263,250 1.505,160 843,750 $2,125,410 $3,069,450 Required a. Compute the EOY noncontrolling interest equity balance. $ b. Prepare the consolidation income statement. Note: Use negative signs with answers as appropriate. Consolidated Income Statement Sales Cost of goods sold Gross Profit Income (loss) from subsidiary Operating expenses Net income Consolidated NI attributable to NCI 0 Consolidated Il attributable to Controlling Interests $ 0 Assume that, on January 1, 2XX1, Kylar Company acquired an 80% interest in Bright Company for a purchase price that was $975,000 over the book value of the subsidiary's Stockholders' Equity on the acquisition date. Kylar uses the equity method to account for its investment in Bright. Kylar assigned the acquisition-date AAP as follows: Useful Life AAP Item PPE Patent Initial Fair Value (years) $525,000 10 150,000 5 Customer List Goodwill 225,000 5 75,000 Indefinite $975,000 80% of if the Goodwill is allocated to the parent. Kylar and Bright report the following financial statements December 31, 2XX4: Income Statement Sales Cost of goods sold Gross Profit Income (loss) from subsidiary Operating expenses Net income Statement of Retained Earnings BOY Retained Earnings Net income Dividends EOY Retained Earnings Balance Sheet Assets: Cash Accounts receivable Inventory Equity Investment PPE, net Liabilities and Stockholders' Equity: Current Liabilities Long-term Liabilities Kylar Bright $1,290,000 $1,125.000 (687,000) (645,000) 603,000 480,000 84,000 (237,000) (247.500) 450,000 232,500 1,317,660 630,000 450,000 232,500 (262,500) (18,750) 1,505,160 843,750 82.500 81,000 69,000 36,000 142.500 142,668 1,399.320 432,090 2,809,782 2,125,410 3.069.450 112,500 600,300 225,000 1,185,000 Common Stock 95,250 177,150 APIC Retained Earnings 187,500 263,250 1.505,160 843,750 $2,125,410 $3,069,450 Required a. Compute the EOY noncontrolling interest equity balance. $ b. Prepare the consolidation income statement. Note: Use negative signs with answers as appropriate. Consolidated Income Statement Sales Cost of goods sold Gross Profit Income (loss) from subsidiary Operating expenses Net income Consolidated NI attributable to NCI 0 Consolidated Il attributable to Controlling Interests $ 0