3.On January 1, 2016, Fuller Company acquired a 80% interest in Wilson Company for a purchase price that was $240,000 over the book value of the Wilsons Stockholders Equity on the acquisition date. Fuller uses the equity method to account for its investment in Wilson. Fuller assigned the acquisition-date AAP as follows:

AAP Items	Initial Fair Value	Useful Life (years)
PPE, net	$150,000	20
Patent	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:

	2018	2019
Transfer price for inventory sale	$70,000	$94,500
Cost of goods sold	(45,000)	(64,500)
Gross profit	$25,000	$30,000
% inventory remaining	20%	30%
Gross profit deferred	$ 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	Wilson
Sales	$4,160,000	$401,600
Cost of goods sold	(3,098,100)	(232,700)
Gross Profit	1,061,900	168,900
Income (loss) from subsidiary	49,200
Operating expenses	(711,200)	(89,900)
Net income	$ 399,900	$ 79,000

Statement of Retained Earnings
	Fuller	Wilson
BOY Retained Earnings	$2,696,120	$404,400
Net income	399,900	79,000
Dividends	(74,500)	(8,900)
EOY Retained Earnings	$3,021,520	$474,500

Balance Sheet
	Fuller	Wilson
Assets:
Cash	$ 309,420	$ 84,700
Accounts receivable	433,600	113,200
Inventory	641,900	142,100
Equity Investment	774,400
PPE, net	4,063,200	800,500
	$6,222,520	$1,140,500
Liabilities and Stockholders Equity:
Current Liabilities	$ 505,900	$ 99,500
Long-term Liabilities	703,500	250,000
Common Stock	402,000	75,300
APIC	1,589,600	241,200
Retained Earnings	3,021,520	474,500
	$6,222,520	$1,140,500

a. Compute the EOY noncontrolling interest equity balance b. Prepare the consolidation journal entries.