Assume that, on January 1, 2XX1, Kylar Company acquired an 80% interest in Bright Company for a purchase price that was $1,300,000 over the book value of the subsidiarys 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:

AAP Item	Initial Fair Value	Useful Life (years)
PPE	$700,000	10
Patent	200,000	5
Customer List	300,000	5
Goodwill	100,000	Indefinite
	$1,300,000

80% of if the Goodwill is allocated to the parent. Kylar and Bright report the following financial statements December 31, 2XX4:

	Kylar	Bright
Income Statement
Sales	$1,720,000	$1,500,000
Cost of goods sold	(916,000)	(860,000)
Gross Profit	804,000	640,000
Income (loss) from subsidiary	112,000
Operating expenses	(316,000)	(330,000)
Net income	600,000	310,000
Statement of Retained Earnings
BOY Retained Earnings	1,756,880	840,000
Net income	600,000	310,000
Dividends	(350,000)	(25,000)
EOY Retained Earnings	2,006,880	1,125,000
Balance Sheet
Assets:
Cash	110,000	108,000
Accounts receivable	92,000	48,000
Inventory	190,000	190,224
Equity Investment	1,865,760
PPE, net	576,120	3,746,376
	2,833,880	4,092,600
Liabilities and Stockholders Equity:
Current Liabilities	150,000	800,400
Long-term Liabilities	300,000	1,580,000
Common Stock	127,000	236,200
APIC	250,000	351,000
Retained Earnings	2,006,880	1,125,000
	$2,833,880	$4,092,600

Required a. Compute the EOY noncontrolling interest equity balance.

b. Prepare the consolidation income statement. Note: Use negative signs with answers as appropriate.

Consolidated Income Statement
Sales
Cost of goods sold
Gross Profit
Income (loss) from subsidiary
Operating expenses
Net income
Consolidated NI attributable to NCI
Consolidated NI attributable to Controlling Interests