On January 1, 2012, Big Company acquired a 75% interest in Small Guy Company. On the acquisition date, the fair value of the entity (controlling and non-controlling) was 530,000 over book value of SmallGuys equity. 180,000 of the excess was assigned to PPE (net) with a remaining useful life of 10 years and 100,000 was assigned to a patent with remaining useful life of 10 years. The remaining excess was assigned to goodwill, with 75% being allocated to the parent. Big Companys net income, exclusive of Small Guy, was 800,000. Small Guys net income was 200,000. Big had dividends of 200,000, while Small paid 50,000 in dividends. The following is an abbreviated version of the balance sheet at December 31, 2016.

1)What was the Parents share of the unamortized AAP on December 31, 2015 (end of year 4, before current year)? (Answer 313,500) 2) What was the beginning balance (Dec 31, 2015/Jan 1, 2016) in the Equity Investment account? ( Answer 872,250)

Small 910,000 Current Assets Equity Investment PP&E, net Big 2,660,000 963,750 2,800,000 6,423,750 900,000 1.810,000 3,000,000 200.000 900,000 100,000 Liabilities Common Stock APIC Retained earnings 160,000 900,000 2,323,750 6.423.750 650,000 1.810,000 Small 910,000 Current Assets Equity Investment PP&E, net Big 2,660,000 963,750 2,800,000 6,423,750 900,000 1.810,000 3,000,000 200.000 900,000 100,000 Liabilities Common Stock APIC Retained earnings 160,000 900,000 2,323,750 6.423.750 650,000 1.810,000