LO 2 P5.7 Equity Method and Eliminating Entries Three Years After Acquisition (see related P4.3) Puffin Industries acquired 90 percent of Sunset Coast Digital's stock on January 1, 2018, for $4,500,000. At that time, Sunset Coast's shareholders' equity totaled $1,400,000, and the estimated fair value of the noncontrolling interest was $500,000. Sunset Coast's inventory (LIFO) was overvalued by $400,000 and its plant assets (10-year life) were overvalued by $500,000. Previously unreported identifiable in- tangible assets were valued at $1,000,000, and amortized over 5 years. Goodwill from this acquisition was impaired by $100,000 in 2019. Sunset Coast depreciates plant assets and amortizes intangibles by the straight-line method. During 2018 and 2019 Sunset Coast reported total net income of $850,000 and paid out 50 percent in dividends. Puffin carries its investment in Sunset Coast using the complete equity method. Sunset Coast's inventory increased each year since it was acquired by Puffin, and Sunset Coast's reported net income for 2020 was $400,000, and dividends totaled 50 percent of reported income. Required Compute Puffin's 2020 equity in net income of Sunset Coast and the noncontrolling interest in net income of Sunset Coast for 2020. b. Compute the balance in the investment in Sunset Coast account at December 31, 2020, after all eq- uity method entries have been booked. Compute the balance of noncontrolling interest, reported on the December 31, 2020, consolidated balance sheet. d. Prepare the working paper eliminating entries needed to consolidate the trial balances of Puffin and Sunset Coast at December 31, 2020. a. c