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In January 1, 2011, Cullmon Company acquired an 80% interest in Toner Company for a purchase price that was $550,000 over the book value of

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In January 1, 2011, Cullmon Company acquired an 80% interest in Toner Company for a purchase price that was $550,000 over the book value of Toner's Stockholders' Equity on the acquisition date. The Cullmon allocated the excess to the following [A] assets: [A] Asset Patent Goodwill Initial Fair Value 300,000 250,000 $550,000 Useful Life (years) 10 Indefinite Toner sells inventory to the Cullmon (upstream) which includes that inventory in products that it (Cullmon), ultimately, sells to customers outside of the controlled group. You have compiled the following data as of 2016 and 2017: 2016 671,000 2017 $ 733,000 Transfer price for inventory sale Cost of goods sold Gross profit % inventory remaining Gross profit deferred (615,000) 56,000 25% $ 14,000 (653,000) $ 80,000 35% $ 28,000 EOY Receivable/Payable $ 90,000 $ 100,000 The inventory not remaining at the end of the year has been sold outside of the controlled group. Cullmon and the Toner report the following financial statements at December 31, 2017: Income Statement Cullmon $ 6,770,000 (4,739,000) 2,031,000 246,872 (1,242,600) $ 1.035.272 Toner $ 2,518,500 (1,511,100) 1,007,400 Sales Cost of goods sold Gross Profit Equity investment income Operating expenses Net income (654,810) $ 352.590 Statement of Retained Earnings Cullmon BOY Retained Earnings $3,401,248 Net income 1,035,272 Dividends (199,210) EOY Retained Earnings $4.237.310 Toner $1,301,225 352,590 (35.259) $1.618.556 Balance Sheet Cullmon Toner Assets: Cash Accounts receivable Inventory Equity Investment PPE, net $ 696,785 584,292 750,513 $ 795,240 866,560 1,313,380 1,846,665 6.317.764 $11.139.609 1.388.533 $3.420.123 Liabilities and Stockholders' Equity: Current Liabilities Long-term Liabilities Common Stock APIC Retained Earnings $ 972,849 4,000,000 1,106,895 822,555 4,237,310 $11.139.609 $ 584,292 839,500 167,900 209,875 1,618,556 $3.420.123 Compute the end of year noncontrolling interest equity balance. In January 1, 2011, Cullmon Company acquired an 80% interest in Toner Company for a purchase price that was $550,000 over the book value of Toner's Stockholders' Equity on the acquisition date. The Cullmon allocated the excess to the following [A] assets: [A] Asset Patent Goodwill Initial Fair Value 300,000 250,000 $550,000 Useful Life (years) 10 Indefinite Toner sells inventory to the Cullmon (upstream) which includes that inventory in products that it (Cullmon), ultimately, sells to customers outside of the controlled group. You have compiled the following data as of 2016 and 2017: 2016 671,000 2017 $ 733,000 Transfer price for inventory sale Cost of goods sold Gross profit % inventory remaining Gross profit deferred (615,000) 56,000 25% $ 14,000 (653,000) $ 80,000 35% $ 28,000 EOY Receivable/Payable $ 90,000 $ 100,000 The inventory not remaining at the end of the year has been sold outside of the controlled group. Cullmon and the Toner report the following financial statements at December 31, 2017: Income Statement Cullmon $ 6,770,000 (4,739,000) 2,031,000 246,872 (1,242,600) $ 1.035.272 Toner $ 2,518,500 (1,511,100) 1,007,400 Sales Cost of goods sold Gross Profit Equity investment income Operating expenses Net income (654,810) $ 352.590 Statement of Retained Earnings Cullmon BOY Retained Earnings $3,401,248 Net income 1,035,272 Dividends (199,210) EOY Retained Earnings $4.237.310 Toner $1,301,225 352,590 (35.259) $1.618.556 Balance Sheet Cullmon Toner Assets: Cash Accounts receivable Inventory Equity Investment PPE, net $ 696,785 584,292 750,513 $ 795,240 866,560 1,313,380 1,846,665 6.317.764 $11.139.609 1.388.533 $3.420.123 Liabilities and Stockholders' Equity: Current Liabilities Long-term Liabilities Common Stock APIC Retained Earnings $ 972,849 4,000,000 1,106,895 822,555 4,237,310 $11.139.609 $ 584,292 839,500 167,900 209,875 1,618,556 $3.420.123 Compute the end of year noncontrolling interest equity balance

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