On January 1, 2014, Parent company acquired an 80 percent interest in Sub company for 425,000. The acquisition-date fair value of the 20 percent noncontrolling interest's ownership shares was 102,500. Also, as of that date, Sub company reported total stockholders' equity of 400,000: 100,000 in common stock and 300,000 in retained earnings. In setting the acquisition price, Parent appraised four accounts at values different from the balances reported within Sub's financial records. In total, the asset of Sub is undervalued by 112,500. Land undervalued by 50,000 Building (8-year remaining life) undervalued by 20,000 Equipment (5-year remaining life) undervalued by 12,500 Machine (20-year remaining life) undervalued by 30,000 As of December 31, 2018, the trial balance of these two companies are as following: Included in these figures is a 20,000 payable that Sub owes to the parent company. 6. Calculate noncontrolling interest in Sub Company at the beginning of 2018. 6.1. Initial NCI fair value: 4 6.2. 20% of increase in Sub's retained earnings account 6.3. 20% of accumulated amortization excess from 2014 to 2017 6.4. NCI beginning 2018 7. Calculate the noncontrolling interest in Sub Company at the end of 2018. 7.1. Accrue 20% of Sub's net earnings 7.2. 20% of excess amortization expense =6500*0.2=1,300 7.3. 20% of dividends payout