James Corporation acquired 75% of the stock of Maple Corporation on January 2, 2020, for $10,000,000 cash and common shares with a par value of $1,000,000 and market value of $20,000,000. The market value of the noncontrolling interest on this date was $8,484,375.

The book value of Maples shareholders equity was $12,000,000. The differential included the following accounts where book value and fair value differed:

Book Value Fair Value Land 4,500,000 3,800,000 Plant assets, net (10 year life) 9,000,000 10,000,000 Patents (previously unrecorded 6 year life) 0 3,000,000 Long-term debt (15 year life) 3,500,000 3,050,000

Goodwill from the acquisition is impaired by $5,000,000 in 2021 and $2,000,000 in 2026.

In 2025, Maple purchased securities available for sale for $1,000,000. The fair value of these investments was $950,000 and $1,020,000 on December 31, 2025 and 2026 respectively.

Maple Net income is 3,160,000.

2020 Ending Investment balance is 31,147,500.

2020 Equity in earnings is 2,530,000 of which 1,897,500 belongs to the James.

Goodwill is 22,734,375 of which 18,187,500 (80%) belongs to the James.

Change in RE is 4,840,000.

Goodwill Impairment percentage is 80% for James and 20% for Maple.

Required: Prepare the investment account and NCI from January 1, 2021 to December 31, 2025. Show and calculate the activity recorded in the investment account and NCI for 2026.

Accounts			James	Maple
Revenues	(48,000,000)	(18,500,000)
Cost of goods sold	22,500,000	7,000,000
Depreciation and amortization expense	1,600,000	2,000,000
Interest and other expenses	9,200,000	4,800,000
Goodwill impairment	-	-
Equity in income of Maple	(1,827,500)	-
Separate company net income	(16,527,500)	(4,700,000)
Consolidated net income
NI to noncontrolling interest
NI to James shareholders
Retained earnings, 1/1	(35,000,000)	(10,000,000)
Net income	(16,527,500)	(4,700,000)
Dividends declared	2,000,000	1,500,000
Retained earnings, 12/31	(49,527,500)	(13,200,000)
Accumulated OCI, 1/1		37,500	50,000
OCI
Equity in OCI		(52,500)	-
OCI - Unrealized gain on SAS		-	(70,000)
Consolidated OCI
OCI to NCI
Accumulated OCI, 12/31		(15,000)	(20,000)
Cash and receivables	17,395,000	5,900,000
Securities available for sale	-	1,020,000
Inventory	7,000,000	5,000,000
Investment in Maple	29,132,500	-
Land	1,000,000	4,500,000
Property and equipment (net)	18,000,000	10,800,000
Patents	-	-
Goodwill	-	-
Total assets	72,527,500	27,220,000
Current liabilities	(4,000,000)	(1,500,000)
Long-term debt	(5,000,000)	(3,500,000)
NCI in Maple
Common stock	(14,000,000)	(9,000,000)
Additional paid-in capital	-	-
Retained earnings, 12/31	(49,527,500)	(13,200,000)
Accumulated other comprehensive income	(15,000)	(20,000)
Total liabilities and stockholders' equity	(72,527,500)	(27,220,000)