D acquired 80 percent of A's outstanding shares on January 1, 2013, in exchange for $369,000 in cash. The subsidiarys stockholders equity accounts totaled $353,000 and the noncontrolling interest had a fair value of $92,250 on that day. However, a building (with a ten-year remaining life) in As accounting records was undervalued by $19,000. D assigned the rest of the excess fair value over book value to As patented technology (five-year remaining life).

FV Allocation (100%):

Building: 19,000 (1,900 amortization per year)

Patented technology: 89,250 (17,850 amortization per year)

A reported net income from its own operations of $67,000 in 2013 and $83,000 in 2014. A declared dividends of $18,000 in 2013 and $22,000 in 2014. D applies the equity method for recording its investment in the A. Given the above acquisition date data and the additional information, show the calculation of ending balance of investment in A on Dec 31, 2014 and amount of equity in investee earnings for year 2014 for D

Answer: Equity in investee earnings - 50,600, Investment in A Balance - 425,400

QUESTION:

Given the above information at acquisition date and in Question 2, Akron also sells inventory to Doone as follows:

Year	Cost to A	Transfer price	Inventory remaining
2013	72,000	130,000	28,000
2014	97,500	150000	40,500
2015	87,500	175,000	50,000

What amounts make up the $59,540 equity earnings of A account balance for 2015 and what amounts make up the $456,000 Investment in A account balance as of December 31, 2015? Show the detailed calculation

(Need entries TI, G and *G)