Cranbrook uses the cost method to account for its investment in Creston and values the non- controlling interest in Creston based on the fair value of its identifiable net assets at acquisition (the parent company extension approach). Both companies pay income tax at a marginal rate of 30%. Cranbrook fully accounts for all deferred (future) income taxes arising from intercompany transactions but does not account for the deferred tax balances arising from the allocation and subsequent amortization/impairment of the acquisition differential. On January 1, 2014, Creston sold a patent to Cranbrook for $330,000. On that date, the patent had carrying value of $370,000 and a remaining economic life of five years. During 2015, Cranbrook sold inventory to Creston for $300,000. The unrealized profits in Creston's inventory on January 1, 2015, amounted to $30,000 and on December 31, 2015, amounted to $50,000. At December 31, 2015, Creston owed Cranbrook $20,000 for inventory purchases during 2015. . On September 1, 2015, Cranbrook sold some land to Creston for $206,000. The land had a carrying value of $164,000 immediately before the sale. Creston still owned this land at the end of 2015. Neither company issued any common shares at any date later than December 31, 2011. . During 2015, Cranbrook Corporation charged Creston Company $150,000 for management services. Management services expense and patent amortization are both included in other expenses. REQUIRED: a) Prepare a consolidated statement of income and retained earnings for Cranbrook Corporation and its subsidiary Creston Company for the year ended December 31, 2015. b) Calculate the following balances that would appear in the consolidated statement of financial position of Cranbrook Corporation and its subsidiary Creston Company as at December 31, 2015: i) noncontrolling interest ii) patents iii) land iv) long-term liabilities v) net deferred income tax asset/liability c) What amount would Cranbrook Corporation report as its net income for 2015 if it used the equity method to account for its investment in Creston Company