On Janaury 1, 2016 PJ Co. acquired 25% interest in AEJR Enterprises for $307,500. The price reflected the assessment that all AEJR's assets and liabilities were stated at fair value. During 2016 AEJR reported net income of $160,000 and paid dividends of $40,000. PJ Co. uses the equity method to account for its investment in AEJR Enterprises.

On January 1, 2017 PJ Co. acquired an additional 50% of AEJR Enterprises for $800,000. At the time of this second acquisition, PJ determined that AEJR had a recently negotiated customer contract with a fair value of $200,000 that was not recorded on its books. This contract had a remaining life of 4 years at the time of acquisiton. In 2017 AEJR had revenues of $400,000, expenses of $250,000 and paid dividends of $48,000. PJ Co. had revenues of $950,000 and expenses of $650,000 before any income related to its investment in AEJR Enterprises.

. Prepare all journal entries PJ Company would make on 1/1/2017 with the acquisition of an additional

50 % of AEJR Enterprises. SHOW ALL WORK IN SUPPORT OF YOUR ANSWER.

b. What is the non controlling interest's share of AEJR Enterprises net income in 2017?

c. What is the value of the non controlling interest on the consolidated balance sheet as of 12/31/2017? SHOW ALL

WORK IN SUPPORT OF YOUR ANSWER.

d. What is consolidated net income after allocation of income to the non controlling interest? SHOW ALL WORK IN

SUPPORT OF YOUR ANSWER.