2. Choco Co. acquired 90% of Allie Co. (90,000 shares) for $810,000 ($9/share) on January 1, 2020. The market value of Allie's stock was $8/share. Choco uses equity method for its internal reporting of investment in Allie. 1/1/2020 Choco Co. Allie Co. BV BV FV Current assets $1,368,000 $238,000 $238,000 Equipment (8 years) 164,000 280,000 360,000 Buildings (30 years) 274,000 210,000 270,000 Liabilities $(546,000) $(168,000) $(168,000) Net asset Common stock (300,000) (150,000) Additional paid in capital (460,000) (350,000) Retained earnings (1/1/20] (500,000) (60,000) *note: numbers in this table in () refer to credit balance. During 2020, Allie earned net income of $180,000, and paid dividends of $22,000 1) All excess payment that Choco paid to purchase Allie will be recorded as a patent (NOT goodwill) with useful life of 25 years. Calculate patent (1 points) and allocated calculated patent between controlling and noncontrolling interest (NCI) on 1/1/2020 (acquisition date, t) (3 points). (total 4 points) 2) Calculate "investment in Allie" balance on 12/31/2020 (t+1). (3 points) 3) Calculate annual amortization excess FV>BV of equipment, building, and patent? (1 point) 4) Prepare consolidation entry A1 (journal entry) for consolidated financial statement ending 12/31/2020 (t+1). (2 points)