Consolidation subsequent to date of acquisition - Equity method with noncontrolling interest and AAP Assume that, on January 1, 2009, a parent company acquired an 80% interest in its subsidiary. The total fair value of the controlling and noncontrolling interests was $500,000 over the book value of the subsidiarys Stockholders Equity on the acquisition date. The parent assigned the excess to the following [A] assets:

[A] Asset Initial Fair Value Useful Life (years)

[A] Asset	Initial Fair Value	Useful Life (years)
Property, plant and equipment (PPE), net	$100,000	10
Customer list	150,000	10
Goodwill	250,000	Indefinite
	$500,000

80% of the Goodwill is allocated to the parent. The parent and the subsidiary report the following financial statements at December 31, 2013:

	Parent	Subsidiary			Parent	Subsidiary
Income statement:				Balance sheet:
Sales	$7,330,000	$1,870,500		Assets
Cost of goods sold	(5,131,000)	(1,122,300)		Cash	$411,313	$131,511
Gross profit	2,199,000	748,200		Accounts receivable	938,240	433,956
Income (loss) from subsidiary	189,496			Inventory	1,422,020	557,409
Operating expenses	(1,392,700)	(486,330)		Equity investment	1,475,671
Net income	$995,796	261,870		Property, plant and equipment (PPE), net	5,374,356	1,280,669
					$9,621,600	$2,403,545
Statement of retained earnings:
BOY retained earnings	$3,682,592	$966,425		Liabilities and stockholders equity
Net income	995,796	261,870		Current liabilities	$1,053,321	$433,956
Dividends	(199,159)	(39,281)		Long-term liabilities	2,000,000	500,000
EOY retained earnings	$4,479,229	$1,189,014		Common stock	1,198,455	124,700
				APIC	890,595	155,875
				Retained earnings	4,479,229	1,189,014
					$9,621,600	$2,403,545

f. Independently calculate consolidated net income, controlling interest net income and noncontrolling interest net income.

Round answers to the nearest whole number. Use negative signs with answers that are deductions.

Consolidated:
Parent's stand-alone net income		Answer
Subsidiary's stand-alone net income		Answer
Less:	Answer100% AAP amortization80% AAP amortization20% AAP amortization	Answer
Subsidiary's adjusted stand-alone net income		Answer
Consolidated net income		Answer
Parent:
Parent's stand-alone net income		Answer
Subsidiary's stand-alone net income		Answer
Less:	Answer100% AAP amortization80% AAP amortization20% AAP amortization	Answer
>80% of subsidiary's stand-alone net income		Answer
Consolidated net income attributable to the parent		Answer
Subsidiary:
20% of subsidiary's stand-alone net income		Answer
Less:	Answer100% AAP amortization80% AAP amortization20% AAP amortization	Answer
		Answer