Martin purchased 80% of Lewis for $750,000 on January 1, 20x1 (year 1). The excess due to undervalued equipment is to be amortized over four years. Total excess of cost over book value including that of the non-controlling interest was $12,000. During 20x1, Lewis sold inventory for a profit of $8,000 to Martin which is still in their inventory at December 31, 20x1. During 20x2 (year 2), Lewis sold to Martin inventory costing $40,000 for $50,000. At year end, 25% of that inventory is still on hand in the inventory of Martin. Lewis reported income of $200,000 in 20X2.(year 2)

a. For 20x2 (year 2), using the equity method, record the profits from Lewis on the books of Martin. (equity method entries)

b. Determine the Non-Controlling Interest in the Lewis income for 20x2 (year 2).