(Cost Method): Pitts Company owns 80% of the common stock of Shannon Company. The stock was purchased for $960,000 on January 1, 2012, when Shannon Companys retained earnings were $675,000 and Common stock was 525,000. BV of Shannon is equal to its FV on the acquisition date. On January 1, 2014, Shannon Company sold fixed assets to Pitts Company for $960,000; Shannon Company had purchased these assets for $1,350,000 on May 1, 2007, at which time their estimated useful life was 16 2/3 years (zero residual value). The estimated remaining useful life to Pitts Company on 1/1/14 is 10 years. Both companies employ the straight-line method of depreciation.

There has been no intracompany sales of merchandise between Pitss Co and Shannon Co.

1. Determine Consolidated net income for 2015. 2. Determine NCI income for 2015. 3. Determine Retained Earnings balance (12/31/2015) on the consolidated balance sheets.