In January 1, 2015, Springfield Company acquired an 80% interest in Lincoln Company for a purchase price that was $350,000 over the book value of Lincolns Stockholders Equity on the acquisition date. Spring uses the equity method to account for its investment in Lincoln. Springfield assigned the acquisition-date AAP as follows:

AAP Items	Initial Fair Value	Useful Life (years)
Patent	200,000	10
Goodwill	150,000	Indefinite
	$350,000

Lincoln sells inventory to Springfield (upstream) which includes that inventory in products that it (Springfield), ultimately, sells to customers outside of the controlled group. You have compiled the following data as of 2020 and 2021:

	2020	2021
Transfer price for inventory sale	$ 305,500	$ 356,500
Cost of goods sold	(269,500)	(316,500)
Gross profit	$ 36,000	$ 40,000
% inventory remaining	25%	35%
Gross profit deferred	$ 9,000	$ 14,000
EOY Receivable/Payable	$ 55,000	$ 65,000

The inventory not remaining at the end of the year has been sold outside of the controlled group.

Springfield and Lincoln report the following financial statements at December 31, 2021:

Income Statement
	Springfield	Lincoln
Sales	$ 5,660,000	$ 1,160,000
Cost of goods sold	(3,830,000)	(687,500)
Gross Profit	1,830,000	472,500
Income (loss) from subsidiary	185,600
Operating expenses	(1,045,200)	(215,500)
Net income	$ 970,400	$ 257,000

Statement of Retained Earnings
	Springfield	Lincoln
BOY Retained Earnings	$6,464,800	$2,385,000
Net income	970,400	257,000
Dividends	(105,400)	(25,000)
EOY Retained Earnings	$7,329,800	$2,617,000

Balance Sheet
	Springfield	Lincoln
Assets:
Cash	$ 978,400	$ 474,200
Accounts receivable	1,142,300	702,700
Inventory	1,515,400	622,900
Equity Investment	2,571,200
PPE, net	5,934,800	1,802,300
	$12,142,100	$3,602,100
Liabilities and Stockholders Equity:
Current Liabilities	$ 689,700	$ 204,600
Long-term Liabilities	2,054,000	379,500
Common Stock	853,600	92,100
APIC	1,215,000	308,900
Retained Earnings	7,329,800	2,617,000
	$12,142,100	$3,602,100

Required:

a. Compute the EOY non-controlling interest equity balance.

b. Prepare the consolidation spreadsheet on the acquisition date.