Gamma acquired 60% of Deltas shares on January 1, 2021paying $500,000 in cash.

Deltas balance sheet as of January 1, 2021and the fair value of Deltas assets and liabilities were as follows:

The useful life of the plant equipment is 5 years starting January 1, 2021. The turnover of short-term assets and liabilities is less than one year. Additionally, during the due-diligence process, Gamma found out that Delta has unrecorded liabilities for product warranties for $100,000 that will be likely exercised over 4 years starting January 1, 2021.

During 2021, Deltas Net Income was $355,000 and Delta paid $50,000 in dividends.

In addition, as of December 31, 2021Gamma determined a goodwill impairment charge equal to $90,000 related to Deltas acquisition.

5) What is the NCI share of Net Income for 2021? (Provide calculation here)

6) Prepare the consolidation entries

BALANCE SHEET DELTA-Book Value DELTA -Fair Value Jan 1, 2021 Jan 1, 2021 Cash Accounts receivable Inventory PPE net Assets 20,000 30,000 250,000 510,000 810,000 20,000 8,000 180,000 550,000 758,000 130,000 300,000 Accounts payable LT Liabilities Common stock Retained earnings Liabilities + Equity 130,000 300,000 480,000 (100,000) 810,000 430,000 Below are Gamma's and Delta's Balance Sheets and Income Statements for the year ended December 31, 2021: BALANCE SHEET GAMMA Dec 31, 2021 DELTA Dec 31, 2021 Cash Accounts receivable Inventory Investment in Delta PPE net Assets 285,000 180,000 520,000 694,400 1,200,000 2,879,400 200,000 385,000 400,000 408,000 1,393,000 Accounts payable LT Liabilities Common stock Retained earnings Liabilities + Equity 550,000 1,100,000 300,000 929,400 2,879,400 408,000 300,000 480,000 205,000 1,393,000 INCOME STATEMENT DELTA GAMMA 2021 2021 910,000 Revenue Investment Income 1,000,000 224,400 1,224,400 910,000 COGS Depreciation Expenses 800,000 120,000 50,000 970,000 408,000 102,000 45,000 555,000 Net Income 254,400 355,000 Using the information provided above, please answer the following questions