All Information is included

REQUIRED:

1.Determine the Goodwill assigned to Non-controlling interest at the acquisition date. (2 points)

2.Prepare supporting amortization of ECOBV schedule for 2020 and verify the equity in income balance for 2020, as reported on Large's separate income statement. (3 points)

3.Calculate the balance of NCI at December 31, 2020. Provide detail calculations. (5 points)

4.Complete consolidated worksheet as of December 31, 2020. (15 points).

Large Company acquired for 80% of the voting stock of Small Company on January 1, 2013 paying $10,000,000 in cash. Large accounts for its investment using the equity method. Small's stockholders' equity at the date of acquisition was $6,000,000 ($2,000,000 capital stock, $4,000,000 retained earnings). The estimated fair value of the non-controlling interest in Small Company at the date of acquisition is $2,400,000. As of the date of acquisition: $3,000,000 intan_'b1es $5 500 000 $100,000 2019; $50,000 for 2020 Note: The impairment in goodwill is distributed between controlling and non-controlling interest based on the percentage of goodwill each of them gets (for example, if the non-controlling interest gets 5% of the entire goodwill, they also get 5% of the impairment). The 2020 pre-closing trial balances for Large and Small are (in thousands): Large Company Small Company Dr (Cr) Dr (Cr) Sales revenue (35,000) (20,000) Equity in net income of Small (359) Cost of goods sold 29,000 14,000 Other operating expenses M Net Income (659) (900) Current assets 20,000 6,000 Plant & equipment, net 55,000 29,700 Investment in Small 12,327 Total Assets 87,327 35,700 Current liabilities (15,000) (6,000) Long-term debt (20,000) (17,000) Capital stock (30,000) (2,000) Retained earnings, Jan. 1 (21,768) (10,000) Net Income (659) (900) Dividends 100 200 Total Liab. and Eauitv (87.327) (35.700)