Case 3.2

Big Company purchased 95% of the common stock of Little Company on May 1, 2020, paying$515,000 in cash. December 31, 2020, trial balances for Big and Little were:

BALANCE SHEET Big Company Little Company

December 31, 2020 December 31, 2020

Current Assets 352,600 179,200

Investment in Little 549,845

Property and Equipment 1,334,000 562,000

Total Assets 2,236,445 741,200

Account and Notes Payable (270,240) (124,000)

Dividend Payable (60,000)

Common Stock ($ 10 par) (1,000,000) (200,000)

APIC (364,000) (90,000)

Treasury Stock at Cost, 500 shares 32,000

R/E 1/1/202 (315,360) (209,200)

Net Income (286,845) (150,000)

Dividend Declared 0 60,000

Total Liabilities + Equity (2,236,445) (741,200)

INCOME STATEMENT Big Company LittleCompany

2020 2020

Sales Revenues (1,940,000) (976,000)

COGsS 1,261,000 584,000

Other Expenses 484,000 242,000

Equity in Subsidiary Income (91,845)

Net Income (286,845) (150,000)

Little Company declared a $60,000 cash dividend on December 20, 2020, payable on January 10, 2021, to stockholders of record on December 31, 2020. Big Company recognized the dividend on its declaration date. Any difference between book value and the value implied by the purchase price relates to subsidiary PPE with 5-year remaining useful life, included in "Property and Equipment."

Revenues and expenses are distributed evenly through the year.

Required:

1.Calculate the balance of NCI at December 31, 2020. Provide detailed calculations. (5 points)

2. consolidated worksheet (in proper form) for Big Company and its subsidiary Little Company as of December 31, 2020. Prepare supporting amortization schedules. (15 points)