Consolidation subsequent to date of acquisition $-$ Equity method with noncontrolling interest and AAP

parent assigned the excess to the following A assets:

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

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

Income statement: Balance sheet:

Sales $$7,330,000$ $$1,871,500$ Assets

Cost of goods sold $(5,131,000)(1,122,300)$ Cash $$412,113$ $$132,511$

Gross profit $2,199,000749,200$ Accounts receivable $938,240433,956$

Income $($loss$)$ from subsidiary $190,296$ Inventory $1,422,020557,409$

Operating expenses $(1,392,700)(486,330)$ Equity investment $1,476,471$

Net income $$996,596262,870$ Property, plant and equipment $($PPE$),$ net $5,374,3561,280,669$

$$9,623,200$ $$2,404,545$

Statement of retained earnings:

BOY retained earnings $$3,682,592$ $$966,425$ Liabilities and stockholders' equity

Net income $996,596262,870$ Current liabilities $$1,053,321$ $$433,956$

Dividends $(199,159)(39,281)$ Long$-$term liabilities $2,000,000500,000$

EOY retained earnings $$4,480,029$ $$1,190,014$ Common stock $1,198,455124,700$

APIC $891,395155,875$

Retained earnings $4,480,0291,190,014$

$$9,623,200$ $$2,404,545$

a$.$ Disaggregate and document the activity for the $100\%$ Acquisition Accounting Premium $($AAP$),$ the controlling interest AAP and the noncontrolling interest AAP.

b$.$ Calculate and organize the profits and losses on intercompany transactions and balances.

c$.$ Compute the pre$-$consolidation Equity Investment account beginning and ending balances starting with the stockholders' equity of the subsidiary.

d$.$ Reconstruct the activity in the parent's pre$-$consolidation Equity Investment T$-$account for the year of consolidation.

e$.$ Independently compute the owners' equity attributable to the noncontrolling interest beginning and ending balances starting with the owners' equity of the subsidiary.

f$.$ Independently calculate consolidated net income, controlling interest

g$.$ Complete the consolidating entries according to the C$-$E$-$A$-$D$-$I sequence.net income and noncontrolling interest net income.