E3-5 Consolidated Balance Sheet after Acquisition On January 1, 2014, Wins Inc. acquired a 70 percent interest in Matt Inc. at a cost of $1,400,000. Matt Inc.’s net assets on this date were $1,500,000. During 2014, Matt Inc. reported net income of $600,000 and declared dividend of

$300,000. The fair values of Matt Inc.’s net assets were equal to the book value on January 1, 2014.

REQuIRED 1. Calculate the goodwill that should be reported in the consolidated balance sheet on December 31, 2014.

2. Calculate the noncontrolling interest that should be reported in the consolidated balance sheet at December 31, 2014.