Mirror Resorts, Inc., a U.S. company, acquires and percent interest in Silver Nugget Company on January 1, 2013, for $80 million cash. The estimated fair value of the 20 percent noncontrolling interest in Silver Nugget is $18 million. Silver Nugget's book value at the date of acquisition is $10 million. Silver Nugget's recorded assets and liabilities are carried at fair value, but it has previously unrecorded intangibles valued at $20 million that are capitalizable under the requirements of ASC Topic 805. These intangibles have an estimated life of five years, straight-line. There are no identifiable intangible or goodwill impairments in either 2013 or 2014. Mirror Resorts uses the complete equity method to account for its investment in Silver Nugget. It is now December 31,2014, and the trial balances of the two companies are as follows:

Required
a. Calculate equity in net income of Silver Nugget for 2014, as reported on Mirror Resorts' books, and the noncontrolling interest in net income of Silver Nugget, as reported on the consolidated income statement for 2014.
b. Prepare a working paper to consolidate the 2014 financial statements of Mirror Resorts and Silver Nugget.

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Dr (Cr) (in thousands) Mirror Resorts Silver Nugget 35,000 215,700 350,000 86,400 (50,000) (600,000) (500) (6,000) (25,000) 4,000 2,000 (800,000) (1,600) 650,000 140,000 $ 5,000 140,000 51,000 Plant and equipment, net.... Intangibles Investment in Silver Nugget.._ Current liabilities. (20,000) (150,000) (100) (5,500) (17,500) 1,600 1,500 (100,000) Treasury stock.. Dividends..A. Sales revenue....ARRA Equity in net income of Silver Nugget... 80,000 14,000 Totals.