1. Determine the Goodwill assigned to Non-controlling interest at the acquisition date (2 points).
2. Determine the balance for the account Investment in Beta at December 31, 2018 after Alphas end-year adjustment to record its equity in Betas income for 2018 (Hint: Dividend adjustment is already included in the balance of investment). Show your calculations (3 points).
3. Determine the balance of the account Equity in Betas Income for the year 2018. Show your calculations (2 points).
4. Calculate the balance of NCI at December 31, 2018. Provide detail calculations of the three components of this balance (3 points).
5. Prepare consolidation adjustment entries (20 points).
6. Complete a consolidated worksheet for Alpha Corporation and its subsidiary Beta as of December 31, 2018. Use the format provided on the next page (You can write your own Excel worksheet, but with the indicated format) (10 points).

Alpha Corporation acquired 75% of Beta Corporation's common stock for $20,100,000 on January 2, $5,900,000. Beta's book value at the 2015. The estimated fair value of the noncontrolling interest was date of acquisition was $10,000,000, and its identifiable net assets were fairly stated except for previously unreported completed technology, valued at $4,000,000, with a remaining life of 5 years, straight-line. It is now December 31, 2018, and you are preparing consolidated financial statements for Alpha and Beta. Following is information on intercompany transactions: On January 2, 2016, Alpha sold equipment to Beta for $6 million and recorded a gain of $2 1 million. The equipment had a remaining life of 10 years at that time. Beta supplies Alpha with component parts for its products, at a markup of 20% on cost. During 2. 2018, Beta made sales totaling $20 million to Alpha. Alpha had parts purchased for $1.8 million and $2.4 million in its 2018 beginning and ending inventory balances, respectively (Hint: $1.8 million is the unsold inventory from last year and $2.4 is the unsold inventory of this year) 3. Alpha sells materials to Beta for use in its manufacturing processes, with a 20 % gross profit ratio. During 2018, Alpha made sales totaling $15 million to Beta. Beta had materials purchased for $3 million and $2.8 million in its 2018 beginning and ending inventory balances, respectively (Hint: $3 million is the unsold inventory from last year and $2.8 is the unsold inventory of this year) Goodwill arising from this acquisition was impaired by a total of $3 million during the years 2015-2017, and no further goodwill impairment occurred in 2018. The separate December 31, 2018 trial balances of Alpha and Beta appear below, before Alpha's end-year adjustment to record its equity in Beta's income for 2018. Balance Sheet at December 31, 2018 Income Statement 2018 Alpha Beta Alpha Beta Cash 1,000 2,500 Sales 150,000 50,000 A/R, net Cost of Sales 5,600 10,000 (100,000) (35,000) Inventories (42,000) (8,000) 70,000 30,000 Other Expenses Plant and Equipment, net 460,000 150,000 Income from Beta Investment in Beta 20,225 8,000 7,000 Net Income Total Assets 556,825 192,500 Current Liabilities 4,000 2,800 Long-term debt Capital Stocks 489,825 163,700 5,000 2,000 Retained earnings, January 1 90,000 20,000 Dividend (40,000) (3,000) 7,000 8,000 Net Income Total equities 556,825 192,500 Consolidation Entries Noncontrolling Consolidated Alpha Beta Accounts Debit Credit Interest Totals (150,000) (50,000) Sales 100,000 35,000 Cost of Sales 42,000 8,000 Operating Expenses (Including Depreciation) Equity in Beta's Income (7,000) Separate company net income Consolidated Net Income NCI in BetaIncome. Net Income to Controlling Interest Retained Earnings 1/1/18 (90,000) Alpha Company (20,000) Beta Company (7,000) Net Income (above) 40,000 3,000 Dividend paid (24,000) Retained Earnings 12/31/2018 1,000 2,500 Cash 5,600 10,000 30,000 A/R 70,000 Inventory 460,000 150,000 Plant and Equipment, net Investment in Beta 192,500 Total Assets (4,000) (489,825) (2,800) (163,700) Current Liabilities Long-term debt (5,000) (2,000) Capital Stocks NCI in Beta 1/1/2018 NCI in Beta 12/31/2018 (24,000) (192,500) Retained Earnings 12/31/2018 Total Liabilities and Equities Alpha Corporation acquired 75% of Beta Corporation's common stock for $20,100,000 on January 2, $5,900,000. Beta's book value at the 2015. The estimated fair value of the noncontrolling interest was date of acquisition was $10,000,000, and its identifiable net assets were fairly stated except for previously unreported completed technology, valued at $4,000,000, with a remaining life of 5 years, straight-line. It is now December 31, 2018, and you are preparing consolidated financial statements for Alpha and Beta. Following is information on intercompany transactions: On January 2, 2016, Alpha sold equipment to Beta for $6 million and recorded a gain of $2 1 million. The equipment had a remaining life of 10 years at that time. Beta supplies Alpha with component parts for its products, at a markup of 20% on cost. During 2. 2018, Beta made sales totaling $20 million to Alpha. Alpha had parts purchased for $1.8 million and $2.4 million in its 2018 beginning and ending inventory balances, respectively (Hint: $1.8 million is the unsold inventory from last year and $2.4 is the unsold inventory of this year) 3. Alpha sells materials to Beta for use in its manufacturing processes, with a 20 % gross profit ratio. During 2018, Alpha made sales totaling $15 million to Beta. Beta had materials purchased for $3 million and $2.8 million in its 2018 beginning and ending inventory balances, respectively (Hint: $3 million is the unsold inventory from last year and $2.8 is the unsold inventory of this year) Goodwill arising from this acquisition was impaired by a total of $3 million during the years 2015-2017, and no further goodwill impairment occurred in 2018. The separate December 31, 2018 trial balances of Alpha and Beta appear below, before Alpha's end-year adjustment to record its equity in Beta's income for 2018. Balance Sheet at December 31, 2018 Income Statement 2018 Alpha Beta Alpha Beta Cash 1,000 2,500 Sales 150,000 50,000 A/R, net Cost of Sales 5,600 10,000 (100,000) (35,000) Inventories (42,000) (8,000) 70,000 30,000 Other Expenses Plant and Equipment, net 460,000 150,000 Income from Beta Investment in Beta 20,225 8,000 7,000 Net Income Total Assets 556,825 192,500 Current Liabilities 4,000 2,800 Long-term debt Capital Stocks 489,825 163,700 5,000 2,000 Retained earnings, January 1 90,000 20,000 Dividend (40,000) (3,000) 7,000 8,000 Net Income Total equities 556,825 192,500 Consolidation Entries Noncontrolling Consolidated Alpha Beta Accounts Debit Credit Interest Totals (150,000) (50,000) Sales 100,000 35,000 Cost of Sales 42,000 8,000 Operating Expenses (Including Depreciation) Equity in Beta's Income (7,000) Separate company net income Consolidated Net Income NCI in BetaIncome. Net Income to Controlling Interest Retained Earnings 1/1/18 (90,000) Alpha Company (20,000) Beta Company (7,000) Net Income (above) 40,000 3,000 Dividend paid (24,000) Retained Earnings 12/31/2018 1,000 2,500 Cash 5,600 10,000 30,000 A/R 70,000 Inventory 460,000 150,000 Plant and Equipment, net Investment in Beta 192,500 Total Assets (4,000) (489,825) (2,800) (163,700) Current Liabilities Long-term debt (5,000) (2,000) Capital Stocks NCI in Beta 1/1/2018 NCI in Beta 12/31/2018 (24,000) (192,500) Retained Earnings 12/31/2018 Total Liabilities and Equities