Assume that, on January 1, 2020, P Company acquired an 80% interest in S Company for a purchase price that was $650,000 over the book value of the subsidiarys Stockholders Equity on the acquisition date. P uses the equity method to account for its investment in .The acquisition-date AAP as follows:

AAP Items

Initial Fair Value

Useful Life (years)

PPE	$350,000	10
Patent	100,000	5
Customer List	150,000	5
Goodwill	50,000	Indefinite
	$650,000

80% of if the Goodwill is allocated to the parent.

Income Statement

P	S
Sales	$860,000	$750,000
Cost of goods sold	-458,000	-430,000
Gross Profit	402,000	320,000
Income (loss) from subsidiary	56,000
Operating expenses	-158,000	-165,000
Net income	$300,000	$155,000

Statement of Retained Earnings

P	S
BOY Retained Earnings	$878,440	$420,000
Net income	300,000	155,000
Dividends	-175,000	-12,500
Ending Retained Earnings	$1,003,440	$562,500

Balance Sheet

P	S
Assets:
Cash	$55,000	$54,000
Accounts receivable	46,000	24,000
Inventory	95,000	95,112
Equity Investment	932,880
PPE, net	288,060	1,873,188
	$1,416,940	$2,046,300
Liabilities and Stockholders Equity:
Current Liabilities	$75,000	$400,200
Long-term Liabilities	150,000	790,000
Common Stock	63,500	118,100
APIC	125,000	175,500
Retained Earnings	1,003,440	562,500
	$1,416,940	$2,046,300

Required:

a. Compute the EOY noncontrolling interest equity balance.

b. Prepare the consolidation journal entries.