ACG 4201 Homework 3 You acquired 80 percent of the outstanding voting shares of Gleason, Inc., on December 31, 2018. You paid a total of $ 560,000 in cash for these shares. The 20 percent non-controlling interest shares traded on a daily basis at fair value of $ 140,000 both before and after your acquisition. On December 31, 2018, Gleason had the following asset and liability account balances: Book Value Fair Value Current assets $ 12,000 $ 12,000 Land . . . . . .. . . . . . ....... $ 163,000 $ 186,000 Buildings ( 20- year life) .... $ 264,000 $ 248,000 $ 253,000 Equipment ( 10- year life). ....... $ 302,000 Patents ( 5- year life) ......... $ 65,000 Notes payable ( 5- year life) . .... $( 227,000) $( 217,000) December 31, 2020, adjusted trial balances for the two companies follow: You Gleason Current assets . $ 440,000 $ 225,000 Land . $ 320,000 $ 80,000 Buildings .. . $ 475,000 $ 290,000 Equipment . . ... $ 624,000 175,000 Investment in Gleason, Inc. . ... Not given Notes payable . . $ (520,000) $ (200,000) Common stock . . ... . . .. $ (780,000) $( 180,000) Retained earnings, 1/ 1/ 20 ...... $ (1,353,000) $ (340,000) Dividends paid . .. $ 200,000 $ 70,000 Revenues . . . $ (1,200,000) $ (320,000) Cost of goods sold . $ 790,000 $ 1 10,000 Depreciation expense . $ 240,000 $ 60,000 Interest expense . . . . . . $ 89,000 $ 30,000 Investment income . . . Not given During 2018, Gleason sold goods costing $ 21,400 to you for $ 31,200. As of Dec. 31, 2020, you are still holding half of that in your inventory. Required: 1. The balance in the Investment Income account at Dec. 31, 2020 is: Partial equity method = Equity method = 2. The balance in the Non-controlling Interest account is: Dec. 31, 2019 = Dec. 31, 2020 = 3. The Non-controlling Interest in Gleason Income for 2020 =