1- On December 31, 2018, Panorama Incorporated purchased 60% of Sky Manufacturing for $300,000. The book value and fair value of Sky's assets and liabilities were equal with the exception of plant assets which were undervalued by $60,000 and had a remaining life of 10 years, and a patent which was undervalued by $40,000 and had a remaining life of 5 years. At December 31, 2020, the companies showed the following balances on their respective adjusted trial balances: Panorama Book Value Sky Book Value Sky Fair Value Assets (includes Investment in Sky) Plant assets - net Patent Expenses $950,000 590,000 310,000 800,000 $300,000 150,000 200,000 300,000 $320,000 150,000 280,000 Liabilities $480,000 $120,000 $120,000 Common Stock 300,000 100,000 Retained Earnings 890,000 330,000 Revenue 980,000 400,000 Required: 1- Calculate the balance in the Plant assets - net and the Patent accounts on the consolidated balance sheet as of December 31, 2020. 2- Calculate consolidated net income for 2020, and the amount allocated to the controlling and noncontrolling interests. 3- Calculate the balance of the noncontrolling interest in Sky to be reported on the consolidated balance sheet at December 31, 2020. (15 Marks) 2- Panama Incorporated and Sunny Company reported summarized balance sheets as shown below, on December 31, 2019. Current assets Noncurrent assets Total assets Panama $420,000 670,000 $1.090.000 Sunny $210,000 430,000 $640.000 Current liabilities Long-term debt Stockholders' equity Total liabilities and equities $230,000 350,000 510,000 $1.090.000 $50,000 150 000 440.000 $640,000 On January 1, 2020, Panama purchased 70% of the outstanding capital stock of Sunny for $392,000, of which $92,000 was paid in cash, and $300,000 was borrowed from their bank. The debt is to be repaid in 10 annual installments beginning on December 31, 2020, with each payment consisting of $30,000 principal, plus accrued interest. The excess fair value of Sunny Company over the underlying book value is allocated to inventory (60 percent) and to goodwill (40 percent). Required: Calculate the balance in each of the following accounts, on the consolidated balance sheet, immediately following the acquisition. a. Current assets b. Noncurrent assets Current liabilities d. Long-term debt Stockholders' equity c. e