Nascent, Inc., acquires 60 percent of Sea-Breeze Corporation for $414,000 cash on January 1, 2018. The remaining 40 percent of the Sea-Breeze shares traded near a total value of $276,000 both before and after the acquisition date. On January 1, 2018, Sea-Breeze had the following assets and liabilities:

	Book Value				Fair Value
Current assets	$	150,000			$	150,000
Land		200,000				200,000
Buildings (net) (6-year remaining life)		300,000				360,000
Equipment (net) (4-year remaining life)		300,000				280,000
Patent (10-year remaining life)		0				100,000
Liabilities		(400,000	)			(400,000	)

The companies financial statements for the year ending December 31, 2021, follow:

	Nascent				Sea-Breeze
Revenues	$	(600,000	)		$	(300,000	)
Operating expenses		410,000				210,000
Investment income		(42,000	)			0
Net income	$	(232,000	)		$	(90,000	)
Retained earnings, 1/1/21	$	(700,000	)		$	(300,000	)
Net income		(232,000	)			(90,000	)
Dividends declared		92,000				70,000
Retained earnings, 12/31/21	$	(840,000	)		$	(320,000	)
Current assets	$	330,000			$	100,000
Land		220,000				200,000
Buildings (net)		700,000				200,000
Equipment (net)		400,000				500,000
Investment in Sea-Breeze		414,000				0
Total assets	$	2,064,000			$	1,000,000
Liabilities	$	(500,000	)		$	(200,000	)
Common stock		(724,000	)			(480,000	)
Retained earnings, 12/31/21		(840,000	)			(320,000	)
Total liabilities and equities	$	(2,064,000	)		$	(1,000,000	)

2. What is the annual excess amortization initially recognized in connection with this acquisition?

3. If the parent had applied the equity method, what investment income would the parent have recorded in 2021?

4. What amount should the parent report as retained earnings in its January 1, 2021, consolidated balance sheet?

5. What is consolidated net income for 2021, and what amounts are attributable to the controlling and noncontrolling interests?

6. Within consolidated statements at January 1, 2018, what balance is included for the subsidiarys Buildings account?

7. What is the consolidated Buildings reported balance as of December 31, 2021?

b. Annual excess amortization C. Investment income d. e. Parent's portion of consolidated retained earnings Consolidated net Income Net income attributable to noncontrolling interest Net income attributable to Nascent, Inc. Subsidiary's building balance included in consolidated buildings Consolidated balance f. g