1 Choco Co acquired 60 of Allie Co (Allie has total of 100,000 shares outstanding and Choco acquired 60,000 shares) for $540,000 ( $9 share ) on December 31, 2018 The market value of Allies stock was $9 share Choco uses equity method to report its investment in Allie 12 31 2018 Choco Co Allie Co BV BV FV Current assets $868,000 $238,000 $238,000 Equipment 4 years 364,000 280,000 360,000 Buildings 12 years 574,000 210,000 270,000 Liabilities $(546,000) $(168,000) $(168,000) Common stock (300,000) (150,000) Additional paid in capital (460,000) (350,000) Retained earnings 12 31 18 (500,000) (60,000) note numbers in this table in () refer to credit balance During 2019, Allie earned net income of $180,000 and paid dividends of $22,000 Calculate goodwill and allocated calculated goodwill between controlling and noncontrolling interest (NCI) on 12 31 2018 (acquisition date) Calculate annual excess amortization of equipment and building Calculate investment in Allie balance on 12 31 2019 Calculate equity in Allies income balance on 12 31 2019 Prepare consolidation entry S for consolidated financial statement ending 12 31 2019 5 Prepare consolidation entry S for consolidated financial statement ending 12 31 2019 Accounts Dr Cr 6 Prepare consolidation entry A for consolidated financial statement ending 12 31 2019 Accounts Dr Cr 7 Prepare consolidation entry I for consolidated financial statement ending 12 31 2019 Accounts Dr Cr 8 Prepare consolidation entry D for consolidated financial statement ending 12 31 2019 Accounts Dr Cr 9 Prepare consolidation entry E for consolidated financial statement ending 12 31 2019 Accounts Dr Cr 10 Chocos net income only from its own operation ( excluding 60 of Allies ownership as Equity in Allies income) in 2019 was $580,000 What is consolidated net income for 2019 attributable to Chocos controlling interest (i e , NI Choco in consolidated income statement) 11 What is the noncontrolling interest (NCI)'s share of the Allie's net income for the year ended 12 31 2019 (i e , i e , NI NCI in consolidated income statement) 12 What is the ending balance of the noncontrolling interest (NCI) in the Allie at 12 31 2019 (i e , NCI in Cake 12 31)

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1. Choco Co. acquired 60% of Allie Co. (Allie has total of 100,000 shares outstanding and Choco acquired 60,000 shares) for $540,000 ( $9/share )

1. Choco Co. acquired 60% of Allie Co. (Allie has total of 100,000 shares outstanding and Choco acquired 60,000 shares) for $540,000 ($9/share) on December 31, 2018. The market value of Allies stock was $9/share. Choco uses equity method to report its investment in Allie.

12/31/2018	Choco Co.	Allie Co.
	BV	BV	FV
Current assets	$868,000	$238,000	$238,000
Equipment [4 years]	364,000	280,000	360,000
Buildings [12 years]	574,000	210,000	270,000
Liabilities	$(546,000)	$(168,000)	$(168,000)
Common stock	(300,000)	(150,000)
Additional paid in capital	(460,000)	(350,000)
Retained earnings[12/31/18]	(500,000)	(60,000)
*note: numbers in this table in () refer to credit balance.

During 2019, Allie earned net income of $180,000 and paid dividends of $22,000.

Calculate goodwill and allocated calculated goodwill between controlling and noncontrolling interest (NCI) on 12/31/2018 (acquisition date)
Calculate annual excess amortization of equipment and building
Calculate investment in Allie balance on 12/31/2019
Calculate equity in Allies income balance on 12/31/2019. Prepare consolidation entry S for consolidated financial statement ending 12/31/2019.

5. Prepare consolidation entry S for consolidated financial statement ending 12/31/2019.

Accounts	Dr.	Cr.

6. Prepare consolidation entry A for consolidated financial statement ending 12/31/2019.

Accounts	Dr.	Cr.

7. Prepare consolidation entry I for consolidated financial statement ending 12/31/2019.

Accounts	Dr.	Cr.

8. Prepare consolidation entry D for consolidated financial statement ending 12/31/2019.

Accounts	Dr.	Cr.

9. Prepare consolidation entry E for consolidated financial statement ending 12/31/2019.

Accounts	Dr.	Cr.

10. Chocos net income only from its own operation (excluding 60% of Allies ownership as Equity in Allies income) in 2019 was $580,000. What is consolidated net income for 2019 attributable to Chocos controlling interest (i.e., NI:Choco in consolidated income statement)?

11. What is the noncontrolling interest (NCI)'s share of the Allie's net income for the year ended 12/31/2019 (i.e., i.e., NI:NCI in consolidated income statement)?

12. What is the ending balance of the noncontrolling interest (NCI) in the Allie at 12/31/2019 (i.e., NCI in Cake 12/31)?