Consolidation Two Years After Acquisition Mirror Resorts, Inc., a U.S. company, acquires an 80 percent interest in Silver Nugget Company on January 1, 2019, for $80 million cash. The estimated fair value of the 20 percent noncontrolling interest in Silver Nugget is $18 million. Silver Nugget's book value at the date of acquisition is $10 million. Silver Nuggets recorded assets and liabilities are carried at amounts approximating fair value, but it has previously unrecorded intangibles valued at $20 million that are capitalizable under the requirements of ASC Topic 805. These intangibles have an estimated life of five years, straight-line. There are no identifiable intangible or goodwill impairments in either 2019 or 2020. Mirror Resorts uses the complete equity method to account for its investment in Silver Nugget. It is now December 31, 2020, and the trial balances of the two companies are as follows: (in thousands) Current assets Plant and equipment, net. Intangibles Investment in Silver Nugget. Current liabilities Long-term debt. Common stock, par value. Additional paid-in capital.. Retained earnings, January 1. Accumulated other comprehensive (income) loss, January 1 Treasury stock Dividends Sales revenue. Equity in net income of Silver Nugget. Equity in other comprehensive income of Silver Nugget Cost of goods sold Operating expenses Other comprehensive (income) loss. Totals Dr (Cr) Mirror Resorts Silver Nugget $ 35,000 $ 5,000 216,600 140,000 350,000 51,050 86,440 (50,000) (20,000) (600,000) (150,000) (500) (100) (6,000) (5,500) (25,000) (17,700) (1,000) 200 4,000 1,600 2,000 1,500 (800,000) (100,000) (1,600) (40) 650,000 80,000 140,000 14,000 100 (50) $ 0 $ 0 Required a. Calculate equity in net income of Silver Nugget for 2020, as reported on Mirror Resorts books, and the noncontrolling interest in net income of Silver Nugget, as reported on the consolidated income statement for 2020. b. Prepare a working paper to consolidate the 2020 financial statements of Mirror Resorts and Silver Nugget