1. Calculate the following amounts on Big pre-consolidation 2018 statement
   1. Investment in Small
   2. Income in Smalls earnings
   3. Gain (Loss) on Revaluation of Investment in Small to fair value
2. Calculate the balance of NCI at December 31, 2018. Provide detail calculations
3. Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2018

On January 1, 2017, Big Company bought a 15% interest in Small Company. The acquisition price of $195,000 reflected an assessment that all of Small's accounts were fairly valued within the accounting records. During 2017, Small reported net income of $100,000 and paid cash dividends of $30,000. Big possessed the ability to influence significantly Small's operations, and therefore, accounted for this investment using the equity method. On January, 1 2018, Big acquired an additional 80% for $1,500,000 cash. The consideration transferred by Big in its second acquisition of Small represents the best available evidence for measuring the fair value of Small Company at January 1, 2018. Also, as of January 1, 2018, Big assessed a $400,000 value to an unrecorded customer contract recently negotiated by Small. The customer contract is anticipated to have a remaining life of 4-years. Small's other assets and liabilities were judged to have fair values equal to their book values. Big elects to continue applying the equity method to this investment for internal reporting purposes. At December 31, 2018, the following financial information is available for consolidation: BALANCE SHEET Big December 31, 2018 Small December 31, 2018 177,500 550,000 Current Assets Investment in Small Company Property, plant, and equipment Patented Technology Total Assets 826,000 850,000 610,000 410,000 1,570,000 Liabilities Common Stock APIC R/E January 1, 2018 Net Income Dividend Paid Total Liabilities + Equity 1,300,000 900,000 180,000 965,000 90,000 550,000 220,000 600,000 150,000 (40,000) 1,570,000 (140,000) INCOME STATEMENT Big 2018 Small 2018 931,000 (615,000) 380,000 (230,000) Revenue Operating Expenses Income in Small's earning Gain(Loss) on revaluation of Investment in Small to fair value Net Income 150,000 On January 1, 2017, Big Company bought a 15% interest in Small Company. The acquisition price of $195,000 reflected an assessment that all of Small's accounts were fairly valued within the accounting records. During 2017, Small reported net income of $100,000 and paid cash dividends of $30,000. Big possessed the ability to influence significantly Small's operations, and therefore, accounted for this investment using the equity method. On January, 1 2018, Big acquired an additional 80% for $1,500,000 cash. The consideration transferred by Big in its second acquisition of Small represents the best available evidence for measuring the fair value of Small Company at January 1, 2018. Also, as of January 1, 2018, Big assessed a $400,000 value to an unrecorded customer contract recently negotiated by Small. The customer contract is anticipated to have a remaining life of 4-years. Small's other assets and liabilities were judged to have fair values equal to their book values. Big elects to continue applying the equity method to this investment for internal reporting purposes. At December 31, 2018, the following financial information is available for consolidation: BALANCE SHEET Big December 31, 2018 Small December 31, 2018 177,500 550,000 Current Assets Investment in Small Company Property, plant, and equipment Patented Technology Total Assets 826,000 850,000 610,000 410,000 1,570,000 Liabilities Common Stock APIC R/E January 1, 2018 Net Income Dividend Paid Total Liabilities + Equity 1,300,000 900,000 180,000 965,000 90,000 550,000 220,000 600,000 150,000 (40,000) 1,570,000 (140,000) INCOME STATEMENT Big 2018 Small 2018 931,000 (615,000) 380,000 (230,000) Revenue Operating Expenses Income in Small's earning Gain(Loss) on revaluation of Investment in Small to fair value Net Income 150,000