1. Assume that, on January 1, 2019, Kuehler Company acquired a 80% interest in Eastwood Company for a purchase price that was $650,000 over the book value of the subsidiary's Stockholders' Equity on the acquisition date. Kuehler uses the cost method to account for its investment in Eastwood. On the date of acquisition, Eastwood' retained earnings balance was $100,000. Kuehler assigned the acquisition-date AAP as follows: AAP Items Initial Fair Value Useful Life (years) PPE $350,000 10 Patent 100,000 Customer List 150,000 Goodwill 50,000 Indefinite $650,000 80% of if the Goodwill is allocated to the parent. Kuehler and Eastwood report the following financial statements December 31, 2022: Income Statement Kuehler Eastwood Sales $860,000 $750,000 Cost of goods sold 458,000 -430,000 Gross Profit 402,000 320,000 Income (loss) from subsidiary 10,000 Operating expenses -158,000 -165,000 Net income $254,000 $155,000 Statement of Retained Earnings Kuehler Eastwood BOY Retained Earnings $878,440 $420,000 Net income 254,000 155,000 Dividends -175,000 12,500 Ending Retained Earnings $957,440 $562,500 Balance Sheet Kuehler Eastwood Assets: Cash $55,000 $54,000 Accounts receivable 46,000 24,000 Inventory 95,000 95,112 Investment in subsidiary 834,880 PPE, net 340,060 1,873,188 $1,370,940 $2,046,300 Liabilities and Stockholders' Equity: Current Liabilities $75,000 $400,200 Long-term Liabilities 150,000 790,000 Common Stock 63,500 118,100 APIC 125,000 175,500 Retained Earnings 957,440 562,500 $1,370,940 $2,046,300 Required: a. Compute the EOY noncontrolling interest equity balance. b. Prepare the consolidation journal entries