Assume that, on January 1, 2019, Kuehler Company acquired an 60% interest in Eastwood Company for a purchase price that was $650,000 over the book value of the subsidiarys Stockholders Equity on the acquisition date. Kuehler uses the equity method to account for its investment in Eastwood. Kuehler assigned the acquisition-date AAP as follows:

AAP ITEMS ----initial fair value-----useful life

PPE -----350,000-----10

PATENT-----100,000------5

CUSTOMER LIST----150,000-----5

Goodwill------100,000------indefinite

60% of the goodwill is allocated to the parent. Kuehler and east wood report the following financial statwments december 31, 2022:

a. compute the EOY noncontrolling interest equity balande

b. prepare the consolidation journal entries

Sales Cost of goods sold Gross Profit Income (loss) from subsidiary Operating expenses Net income Income Statement Kuehler $860,000 -458,000 402,000 56,000 -158,000 $300,000 Eastwood $750,000 -430.000 320,000 -165,000 $155.000 Statement of Retained Earnings Kuehler BOY Retained Earnings $878,440 Net income 300,000 Dividends -175,000 Ending Retained Earnings $1,003,440 Eastwood $420,000 155,000 -12,500 $562,500 Balance Sheet Kuebler Eastwood Assets: Cash Accounts receivable Inventory Equity Investment PPE, net $55,000 46,000 95,000 932,880 288,060 $1.416.940 $54,000 24,000 95,112 1,873,188 $2,046,300 Liabilities and Stockholders' Equity: Current Liabilities Long-term Liabilities Common Stock APIC $75,000 150,000 63,500 125,000 $400,200 790,000 118,100 175,500 Retained Earnings 1,003,440 $1.416.940 562,500 $2,046.300