Assume that, on January $1,2$XX$1,$ Kylar Company acquired an $80\%$ interest in Bright Company for a purchase price that was $$1,300,000$ over the book value of the subsidiary$$s Stockholders$$ Equity on the acquisition date. Kylar uses the equity method to account for its investment in Bright. Kylar assigned the acquisition$-$date AAP as follows:

$80\%$ of if the Goodwill is allocated to the parent. Kylar and Bright report the following financial s Required

a$.$ Compute the EOY noncontrolling interest equity balance. $

b$.$ Prepare the consolidation income statement.

Note: Use negative signs with answers as appropriate.

$\backslash$table$[[$Consolidated Income Statement,$],[$Sales$,$$$,3,220,000],[$Cost of goods sold,$(1,776,000),],[$Gross Profit,$1444000,],[$Income $($loss$)$ from subsidiary,$(112,000)\backslash$times $,],[$Operating expenses,$(646,000)\backslash$times $,],[$Net income,$686000,],[$Consolidated NI attributable to NCI,$(62,000)\backslash$times $,],[$Consolidated NI attributable to Controlling Interests,$$,624000]]$