Excess fair value assignments		Remaining Life	Annual Amortization
Patent	400,000	5	80,000
Goodwill	275,000

Intra-company gross profit deferrals related to the inventory transfers.

Year	Original cost to Nittle, Inc.	Transfer Price to Jet Corp.	Ending Balance at Transfer Price	Deferred Gross Profit
2020	$ 189,800	$ 260,000	$ 90,000	$ 24,300
2021	$ 238,000	$ 340,000	$150,000	$45,000

Financial information for the year ended 12/31/21 kis presented below. The parent company has applied the equity method to record its investment in Nittle.

Account Name (number)	Jet	Nittle
Revenue (40)	(1,940,000)	(907,000)
Cost of goods sold (50)	980,000	400,000
Expenses (51)	393,904	221,760
Interest exp.-bonds (60)	2,096
Interest rev.-bond invest. (61)		(2,760)
Equity in income of Nittle (62)	(180,000)
Gain on retirement of debt (63)
Net income	(744,000)	(288,000)
Retained earnings (1/1)	(3,800,000)	(490,000)
Net income	(744,000)	(288,000)
Dividends paid (34)	200,000	40,000
Retained earnings (12/31)	(4,344,000)	(738,000)
Cash (10)	357,200	129,000
Accounts rec. (11)	975,000	315,000
Inventory (12)	840,000	781,000
Investment in Nittle (13)	2,096,630
Invest. in Jet bonds (14)		23,000
Buildings and Equipment (net) (15)	2,325,000	963,000
Patent (16)	950,000	127,000
Goodwill (17)
Total Assets	7,543,830	2,338,000
Accounts pay. (20)	(450,000)	(150,000)
Notes pay. (22)	(323,630)	(350,000)
Bonds pay. (23)	(25,000)
Prem. on bonds (24)	(1,200)
Common stock (30)	(1,900,000)	(900,000)
Additional PIC (31)	(500,000)	(200,000)
Retained earnings, 12/31/18	(4,344,000)	(738,000)
Total liabilities and equity	(7,543,830)	(2,338,000)

Complete the consolidation entries for the year ended December 31, 2021. The account numbers are listed on the financial information above. Use 35 for retained earnings and 39 for Non-Controlling Interest.

Ignore your answers to the previous questions. Assume that Jet acquired 80% of Nittle on January 1, 2019. You will need to calculate the net income attributable to the Non-Controlling Interest in question 12.

The correct consolidation entries are included in the worksheet. Complete the NCI column and calculate consolidated totals. Use parenthesis to indicate a credit balance.

Note: you will need to complete the income statement and statement of retained earnings in problem 10 and the balance sheet in problem 11.

Consolidation Worksheet
			Consolidation Entries				NCI	Consolidated Balances
	Jet	Nittle		Dr.		Cr.
Revenues	(1,740,000)	(950,000)	T1	300,000
COGS	820,000	500,000	G	40,000	T1	300,000
					*G	35,000
Expenses	342,717	221,873	E	70,000
Int. Exp.-bonds	1,283				B	(1,283)
Int. Inc.-bond investment		(1,873)	B	1,873
Gain on retirement of debt					B	2,654
Equity in Income of Nittle	(124,000)		I	124,000
Net Income	(700,000)	(230,000)
N/I attributable to NCI
N/I attributable to Jet
Retained Earnings (1/1)	(2,800,000)	(345,000)	*G	35,000
			S	310,000
Net Income	(700,000)	(230,000)
Dividends	200,000	25,000			D	20,000
Retained Earnings (12/31)	(3,300,000)	(550,000)