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26. On January 1, 2016, Fuller Company acquired a 80% interest in Wilson Company for a AAP Items PPE, net Patent purchase price that was

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26. On January 1, 2016, Fuller Company acquired a 80% interest in Wilson Company for a AAP Items PPE, net Patent purchase price that was $240,000 over the book value of the Wilson's Stockholders' Equity on the acquisition date. Fuller uses the equity method to account for its investment in Wilson. Fuller assigned the acquisition dato AAP as follows: Initial Fair Value Useful Life (years) 150,000 20 90.000 15 $240,000 Wilson sells inventory to Fuller (upstream) which includes that inventory in products that it, ultimately, sells to customers outside of the controlled group. You have compiled the following data for the years ending 2018 and 2019: 30% Transfer price for inventory sale 2018 2019 Cost of goods sold $70,000 $94,500 Gross profit (45.000 (64.500) % inventory remaining $25,000 $30,000 Gross profit deferred 20% $ 5,000 $ 9,000 EOY Receivable/Payable $29,500 $32,000 The inventory not remaining at the end of the year has been sold outside of the controlled group The parent and the subsidiary report the following financial statements at December 31, 2019: Income Statement Fuller Sales $4,160,000 Cost of goods sold (3.098.100) Gross Profit 1,061,900 Income (loss) from subsidiary 49,200 Operating expenses (711.200) Net income 399.900 Wilson S401,600 (232.700) 168,900 (89.900) S 79.000 Statement of Retained Earnings Fuller BOY Retained Earnings $2,696,120 Net income 399,900 Dividends (74.500 EOY Retained Earnings $3.021.520 Wilson $404,400 79,000 (8.900) $474,500 Balance Sheet Wilson Fuller $ 84,700 113,200 142,100 Assets: Cash Accounts receivable Inventory Equity Investment PPE, net $ 309,420 433,600 641,900 774,400 4,063,200 $6,222,520 800,500 $1.140,500 Liabilities and Stockholders' Equity: Current Liabilities Long-term Liabilities Common Stock APIC Retained Earnings 0000 $ 505,900 703,500 402,000 1,589,600 3,021.520 $6,222.520 $ 99,500 250,000 75,300 241,200 474,500 $1.140,500 a. Required: 0002 Compute the EOY noncontrolling interest equity balance b. Prepare the consolidation journal entries. 000 002

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