On December 31, 2017, Kootuk Inc. (Kootuk) pur chased 75 percent of the common shares of Grimmer Ltd. (Grimmer) for $3,500,000. At the time of the purchase, Kootuk's management made the following estimates of the fair values of Grimmer's assets and liabilities:

Required:
a. Calculate the amount of non-controlling interest that Kootuk would report on its December 31, 2017 consolidated balance sheet as a result of its purchase of Grimmer.
b. What amount would be included in the assets and liabilities on the Kootuk€™s December 31, 2017 consolidated balance sheet as a result of the purchase ofGrimmer?

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Carrying amount of Grimmer's assets and liabilities on December 31, 2017 S5,000,000 2,000,000 Fair value of Grimmers assets and liabilities on December 31, 2017 $6,000,000 2,400,000 Assets Liabilities