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At December 31, Year 4, Hein Company owned 90,000 ordinary shares of Jensen Company when the shareholders' equity of Jensen was as follows: Ordinary shares

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At December 31, Year 4, Hein Company owned 90,000 ordinary shares of Jensen Company when the shareholders' equity of Jensen was as follows: Ordinary shares (100,000 no par value shares $400,000 issued and outstanding) Retained earnings 500,000 Total $900,000 The unamortized acquisition differential at December 31, Year 4, was as follows: Equipmentnet (remaining useful life of 9 $ 90,000 years} Goodwill 120,000 Total $210,000 On January 1, Year 5, Hein sold 20,000 ordinary shares of Jensen to an unrelated party for $250,000. Jensen's statement of retained earnings for Year 5 was as follows: Retained earnings, beginning of year $500,000 Prot 105,000 Dividends (50,000) Retained earnings, end of year $555,000 On January 1, Year 6, Hein sold 25,000 ordinary shares of Jensen to an unrelated party for their fair value of $13 per share. Additional Information - Hein Company uses the equity method to account for its investment in Jensen for its separate entity financial statements. - The unamortized acquisition differential at December 31, Year 4, was split between the controlling and non-controlling interests in direct proportion to their respective percentage ownership. There was no impairment of goodwill in Year 5. - There were no unrealized prots from intercompany transactions since the date of acquisition. Required (a) Calculate the balance in the investment account at December 31, Year 4, and non-controlling interest on the consolidated balance sheet at December 31, Year 4. (b) Prepare the journal entries relating to Hein investment in Jensen for Year 5. (c) Calculate the balance in the investment account at December 31, Year 5, and non-controlling interest on the consolidated balance sheet at December 31, Year 5. (d) Prepare the journal entry to record the sale of 30,000 ordinary shares by Hein on January 1, Year 5

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