Nascent, Inc., acquires 60 percent of Sea-Breeze Corporation for $414,000 cash on January 1, 2012. 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, 2012, 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 life) 300,000 360,000 Equipment (net) (4-year life) 300,000 280,000 Patent (10-year life) 0 100,000 Liabilities (400,000 ) (400,000 )

The companies financial statements for the year ending December 31, 2015, 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, 1/1/15 $ (700,000 ) $ (300,000 ) Net income (232,000 ) (90,000 ) Dividends declared 92,000 70,000 Retained earnings, 12/31/15 $ (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, 12/31/15 (840,000 ) (320,000 ) Total liabilities and equities $ (2,064,000 ) $ (1,000,000 )

b.

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

c.

If the parent had applied the equity method, what investment income would the parent have recorded in 2015?

d.

What is the parents portion of consolidated retained earnings as of January 1, 2015? Within consolidated statements at January 1, 2012, what balance is included for the subsidiarys Buildings account?

e.

What is consolidated net income for 2015 and what amounts are attributable to the controlling and noncontrolling interests? Consolidated net Income Noncontrolling interest in consolidated net incomeControlling interest in consolidated net income ..

g.

What is the consolidated Buildings reported balance as of December 31, 2015?

f.

Within consolidated statements at January 1, 2012, what balance is included for the subsidiarys Buildings account?