My professor didn't thoroughly explain the problems in class, and hasn't put up the guides and they're due tomorrow at 8 AM, any chance you'd be able to help me understand the breakdown of these?

1. Assume that, on January 1, 2014, a parent company acquired a 70% interest in its subsidiary for a purchase price that was $125,000 over the book value of the subsidiary's Stockholders' Equity on the acquisition date. The parent allocated the excess to the following [A] asset: [A] Asset PPE Initial Fair Value 125,000 Useful Life (years) 20 Assume that the parent sells inventory to the subsidiary (downstream) which includes that inventory in products that it, ultimately, sells to customers outside of the controlled group. You have compiled the following data as of 2015 and 2016: Transfer price for inventory sale Cost of goods sold Gross profit % inventory remaining Gross profit deferred 2015 $97,280 (72,780) $24,500 25% $ 6,125 2016 $133,400 (105,400) $28,000 35% $ 9,800 EOY Receivable/Payable $10,000 $ 5,000 The inventory not remaining at the end of the year has been sold outside of the controlled group. The parent and the subsidiary report the following financial statements at December 31, 2016: Income Statement Parent Sales Cost of goods sold Gross Profit Equity investment income Operating expenses Net income $5,430,000 (3,801,000) 1,629,000 137,855 (1,031,700) $ 735,155 Subsidiary $638,650 (300,150) 338,500 (130,065) $208,435 Statement of Retained Earnings Parent BOY Retained Earnings Net income Dividends EOY Retained Earnings continued next page $2,728,032 735,155 (136,291) $3,326,896 Subsidiary $258,463 208,435 (7,004) $459,894 Balance Sheet Parent Assets: Cash Accounts receivable Inventory Equity Investment PPE, net Liabilities and Stockholders' Equity: Current Liabilities Long-term Liabilities Common Stock APIC Retained Earnings Subsidiary $ 607,551 695,040 1,053,420 ? 5,067,276 $? $ 276,803 116,058 149,075 $ 780,291 2,203,202 887,805 659,745 ? $? $ 116,058 166,750 33,350 41,688 459,894 $817,740 Required: a. Compute the 2016 Ending Equity Investment balance. b. Compute the 2016 Ending noncontrolling interest equity balance. c. Prepare the consolidation entries for 2016. 275,805 $817,740 2. On October 15, our company has executed a purchase order for new equipment to be purchased from a supplier in France for a purchase price of 0.5 million. The equipment is deliverable on March 31. In order to hedge the commitment to pay 0.5 million, we enter into a forward exchange contract (designated as a fair value hedge) on October 15 to receive 0.5 million on March 31 at an exchange rate of $1.35: 1. Assume the following exchange rates: Date Spot Rates March 31 October 15 $1.10:1 $1.35:1 December 31 $1.25:1 $1.40:1 March 31 $1.42:1 n/a Required: Prepare the journal entries to record the following: Execution of the purchase order and forward contract Adjusting entries at December 31 Receipt of equipment and payment to equipment supplier on March 31