On January 1, 2014, Plate Company purchased a 90% interest in the common stock of Set Company for $650,000, an amount $20,000 in excess of the book value of equity acquired. The excess relates to the understatement of Set Company's land holdings.

Excerpts from the consolidated retained earnings section of the consolidated statements work-paper for the year ended December 31, 2014, follow:

Set Company's stockholders' equity is composed of common stock and retained earnings only.
Required:
A. Prepare the eliminating entries required for the preparation of a consolidated statements work-paper on December 31, 2014, assuming the use of the cost method.
B. Prepare the eliminating entries required for the preparation of a consolidated statements work-paper on December 31, 2014, assuming the use of the equity method.
C. Determine the total non-controlling interest that will be reported on the consolidated balance sheet on December 31, 2014. How does the non-controlling interest differ between the cost method and the equity method?

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Set Company 1/1/14 retained earnings Net income from above Dividends declared 12/31/14 retained earnings to the balance sheet 90,000 132 000 (50,000 272,000 Consolidated Balances 880,000 (88,000) 1,2125噸)