. Assume that, on January 1, 2013, a parent company acquired a 70% interest in its subsidiary for a purchase price that was $125,000 over the book value of the subsidiary's Stockholders' Equity on the acquisition date. The parent allocated the excess to the following [A] asset:

[A] Asset	Initial Fair Value	Useful Life (years)
PPE	125,000	20

Assume that the parent sells inventory to the subsidiary (downstream) which includes that inventory in products that it, ultimately, sells to customers outside of the controlled group. You have compiled the following data as of 2015 and 2016:

	2015		2016
Transfer price for inventory sale	$97,280		$133,400
Cost of goods sold	(72,780	)	(105,400	)
Gross profit	$24,500		$28,000
% inventory remaining	25%		35%
Gross profit deferred	$ 6,125		$ 9,800
EOY Receivable/Payable	$ 10,000		$ 15,000

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, 2016:

Income Statement
	Parent		Subsidiary
Sales	$5,430,000		$638,650
Cost of goods sold	(3,801,000	)	(300,150	)
Gross Profit	1,629,000		338,500
Equity investment income	137,855
Operating expenses	(1,031,700	)	(130,065	)
Net income	$ 735,155		$208,435

Statement of Retained Earnings
	Parent		Subsidiary
BOY Retained Earnings	$2,728,032		$258,463
Net income	735,155		208,435
Dividends	(136,291	)	(7,004	)
EOY Retained Earnings	$3,326,896		$459,894

Balance Sheet
	Parent		Subsidiary
Assets:
Cash	$ 607,551		$276,802
Accounts receivable	695,040		116,058
Inventory	1,053,420		149,075
Equity Investment	434,652
PPE, net	5,067,276		275,805
	$7,857,939		$817,740
Liabilities and Stockholders' Equity:
Current Liabilities	$ 780,291		$116,058
Long-term Liabilities	2,203,202		166,750
Common Stock	887,805		33,350
APIC	659,745		41,688
Retained Earnings	3,326,896		459,894
	$7,857,939		$817,740

Required:

a.	Compute the EOY Equity Investment balance of $434,652 (4 years subsequent to the acquisition).
b.	Compute the EOY noncontrolling interest equity balance.
c.	Prepare the consolidation spreadsheet.