On January 1, 20X5, Huge Ltd. purchased 80% of the shares of Tiny Ltd. for $2,100,000 and, on the same day, Tiny Ltd. purchased 60% of the shares of Tinier Ltd. for $1,395,000. Any fair value increment/decrement was fully allocated to land.

There were no intercompany transactions.

Required
Calculate the balance of non-controlling interest as it would be shown on the consolidated SFP of Huge Ltd. at December 31, 20X5, under the entity method.

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At January 1, 20X5 Huge Ltd. Tinier Ltd. $ 750,000 1,095,000 $1,845,000 Tiny Ltd. Shares Retained earnings $2,925,000 $2,400,000 $6,375,000 $5,265,000 During 20X5 $ 450,000 60,000 Net income (cost basis) Dividends paid $ 900,000 $1,200,000 180,000 150,000