(1) On January 1, 2018, Panorama Company acquired 80% of Scann Corporation for $6,400,000. At the time of the acquisition, the book value of Scann's assets and liabilities was equal to the fair value except for equipment that was undervalued $80,000 with a four-year remaining useful life and inventories that were undervalued $20,000 and sold in 2018. Panorama separate net income in 2018 and 2019 was $1,100,000 and $1,150,000, respectively. Scann separate net income in 2018 and 2019 was $300,000 and $360,000, respectively. Dividend payments by Scann in 2018 and 2019 were $60,000 and $60,000, respectively Required: Using equity method, 1) Calculate Investment in Scann shown on Panorama's ledger at December 31, 2018 and 2019. 2) Calculate Investment in Scann shown on the consolidated statements at December 31, 2018 and 2019. 3) Calculate consolidated net income for 2018 and 2019. 4) Calculate Noncontrolling interest balance on Panorama's ledger at December 31, 2018 and 2019. 5) Calculate Noncontrolling interest balance on the consolidated statements at December 31, 2018 and 2019. (Support your answer in all points with detailed calculations and explanation) (15 Marks) (2) The consolidated income statement for POP Industries and its 75% Subsidiary, SAS at the end of 2019 was as follows: Consolidated sales $900,000, Consolidated cost of Sales $500,000 Operating expenses $200,000, Noncontrolling interest share $25,000 and Controlling interest share $175,000. After preparing the consolidated income statement, the accountants discovered that POP had sold inventory that cost $75,000 to SAS for $95,000, and SAS had sold inventory that cost $40,000 to POP for $58,000. Half of the products from both transactions still remained in inventory at December 31, 2019. These intercompany sales transactions had not been properly eliminated in consolidation. Required: Prepare the consolidated income statement for POP and Subsidiary for 2019 after correcting these errors. (Support your answer with detailed Formulas, calculations and explanation) (15 Marks) (1) On January 1, 2018, Panorama Company acquired 80% of Scann Corporation for $6,400,000. At the time of the acquisition, the book value of Scann's assets and liabilities was equal to the fair value except for equipment that was undervalued $80,000 with a four-year remaining useful life and inventories that were undervalued $20,000 and sold in 2018. Panorama separate net income in 2018 and 2019 was $1,100,000 and $1,150,000, respectively. Scann separate net income in 2018 and 2019 was $300,000 and $360,000, respectively. Dividend payments by Scann in 2018 and 2019 were $60,000 and $60,000, respectively Required: Using equity method, 1) Calculate Investment in Scann shown on Panorama's ledger at December 31, 2018 and 2019. 2) Calculate Investment in Scann shown on the consolidated statements at December 31, 2018 and 2019. 3) Calculate consolidated net income for 2018 and 2019. 4) Calculate Noncontrolling interest balance on Panorama's ledger at December 31, 2018 and 2019. 5) Calculate Noncontrolling interest balance on the consolidated statements at December 31, 2018 and 2019. (Support your answer in all points with detailed calculations and explanation) (15 Marks) (2) The consolidated income statement for POP Industries and its 75% Subsidiary, SAS at the end of 2019 was as follows: Consolidated sales $900,000, Consolidated cost of Sales $500,000 Operating expenses $200,000, Noncontrolling interest share $25,000 and Controlling interest share $175,000. After preparing the consolidated income statement, the accountants discovered that POP had sold inventory that cost $75,000 to SAS for $95,000, and SAS had sold inventory that cost $40,000 to POP for $58,000. Half of the products from both transactions still remained in inventory at December 31, 2019. These intercompany sales transactions had not been properly eliminated in consolidation. Required: Prepare the consolidated income statement for POP and Subsidiary for 2019 after correcting these errors. (Support your answer with detailed Formulas, calculations and explanation) (15 Marks)