Madison Corporation reports the following table in the footnotes to its 2016 annual report (dollars in millions, except for amounts per share and shares in thousands):

Years ended December 31,	2016	2015	2014
uncontrolled interest
Balance at the beginning of the year	$49,400	$44,690	$39,850
Net income attributable to non-controlling interest	8,180	7,450	6,210
Other comprehensive income (loss)	940	(530)	820
Total comprehensive income	9,120	6,920	7,030
distributions and others	(2,460)	(2,210)	(2,190)
Balance at the end of the year	$56,060	$49,400	$44,690

to. Describe where the 2016 non-controlling ending balance should be reported on Madison Corporation's financial statements.

b. Prepare the journal entry to recognize the 2016 net income attributable to non-controlling interest.

C. Is the journal entry in "b" recorded in the books of the parent or subsidiary? How is this amount determined?

2.Fields Company purchased a 70% interest in the Mullen Company five years ago without AAP (ie, purchased at book value). Each one reports the following income statement for the current year:

Statement of income
	Campos	Mullen
Sales	$7,800,000	$1,250,000
cost of goods sold	(5,900,000)	(675.000)
Gross profit	1,900,000	575,000
Profit (loss) of subsidiary	206,500
operating expenses	(1.650.000)	(280.000)
Net Income	$ 456,500	$ 295,000

to. Compute the subsidiary's profit (loss) of $206,500 reported by Fields Company.
b. Prepare the consolidated profit and loss account for the current year.

3. On January 1, 2016, Fuller Company acquired an 80% interest in Wilson Company for a purchase price of $240,000 above the book value of Wilson's equity on the acquisition date. Fuller uses the equity method to account for his investment in Wilson. Fuller assigned the PSA acquisition date as follows:

AAP Articles	Initial fair value	Useful life (years)
EPP, neto	$150,000	20
Patent	90.000	15
	$240,000

Wilson sells inventory to Fuller (upstream) which includes that inventory in products that it ultimately sells to customers outside of the controlled group. He has compiled the following data for the years ending in 2018 and 2019:

	2018	2019
Transfer price for sale of inventory	$70,000	$94,500
cost of goods sold	(45,000)	(64,500)
Gross profit	$25,000	$30,000
% of remaining inventory	20%	30%
Deferred gross profit	$ 5,000	$ 9,000
EOY receivable/payable	$29,500	$32,000

The non-remaining inventory at the end of the fiscal year has been sold outside the controlled group.

The parent company and the subsidiary report the following financial statements as of December 31, 2019:

Statement of income
	Batan	wilson
Sales	$4,160,000	$401,600
cost of goods sold	(3,098,100)	(232,700)
Gross profit	1,061,900	168,900
Profit (loss) of subsidiary	49,200
operating expenses	(711,200)	(89,900)
Net Income	$ 399,900	$ 79,000

Statement of retained earnings
	Batan	wilson
BOY Retained earnings	$2,696,120	$404,400
Net Income	399,900	79,000
dividends	(74,500)	(8,900)
EOY retained earnings	$3,021,520	$474,500

Balance sheet
	Batan	wilson
Assets:
Money	$ 309,420	$ 84,700
accounts receivable	433,600	113,200
Inventory	641,900	142,100
Capital investment	774,400
EPP, neto	4,063,200	800,500
	$6,222,520	$1,140,500
Liabilities and Stockholders' Equity:
current liabilities	$ 505,900	$ 99,500
Long term passives	703,500	250.000
Common actions	402,000	75,300
APIC	1,589,600	241,200
Retained earnings	3,021,520	474,500
	$6,222,520	$1,140,500

a. Calculate the principal balance of the non-controlling interest EOY
b. Prepare the consolidation journal entries.

4. Suppose a parent company owns 80% of its subsidiary. The Parent uses the equity method to account for its Investment in Subsidiary. On January 1, 2015, the Parent issued to an unaffiliated company $3,000,000 (registered) 10-year bonds, 10% payable with a premium of $213,000. The bonds pay interest on December 31 of each year. On January 1, 2018, the Subsidiary acquired 30% of the bonds for $1,151,000. Both companies use straight-line depreciation. In preparing the consolidated financial statements for the year ended December 31, 2019, what consolidation entry adjustment is necessary for the investment in subsidiary account balance at the beginning of the year?