Big Co$.$ owns $80\%$ of the common stock of Little Co$.$ It was acquired at book value, and

all of Little's assets and liabilities had fair values equal to book value. On $1/1/23,$ Little

sold equipment to Big for $$30,000.$ Little had purchased the equipment on $1/1/2020$ for

$$40,000,$ and was depreciating is straight$-$line over an eight year expected useful life with

zero salvage value.

At $\frac{1}{1}\frac{?}{23}$ Little had common stock of $$50,000$ and retained earnings of $$100,000.$ Little

reported earnings of $$20,000$ in $2023,$ and paid no dividends.

Required:

Prepare the equity method entries for Big to account for their investment in Little in

Prepare consolidation$/$elimination entries for $2023$ ARISING FROM THIS

TRANSACTION for $2023($i$.$e$.,$ no "basic consolidation entry" or "excess value" entries.

Just the intercompany transaction!$)$

What is the Non$-$controlling interest in the NI of Little for $2023?$

Edit View Insert Format Tools Table

$12pt$ Paragraph $$

B I

U