. Choco Co. acquired 60% of Allie Co. (60,000 shares) for $600,000 ($10/share) on December 31, 2018. The market value of Allies stock was $9/share. Choco uses equity method for its internal reporting of investment in Allie.

12/31/2018	Choco Co.	Allie Co.
	BV	BV	FV
Current assets	$868,000	$238,000	$238,000
Equipment [4 years]	364,000	280,000	360,000
Buildings [12 years]	574,000	210,000	270,000
Liabilities	$(546,000)	$(168,000)	$(168,000)
Common stock	(300,000)	(150,000)
Additional paid in capital	(460,000)	(350,000)
Retained earnings [12/31/18]	(500,000)	(60,000)
*note: numbers in this table in () refer to credit balance.

During 2019, Allie earned net income of $180,000, and paid dividends of $22,000.

1) Calculate goodwill and allocated calculated goodwill between controlling and noncontrolling interest (NCI) on 12/31/2018 (acquisition date)

2. Calculate investment in Allie balance on 12/31/2019.

3. Prepare consolidation entry A1 for consolidated financial statement ending 12/31/2019.

Accounts	Dr.	Cr.

4. Prepare consolidation entry A2 for consolidated financial statement ending 12/31/2019.

Accounts	Dr.	Cr.