1. On January 1, 2016, Parent Corp purchased an 80% controlling interest in its primary vendor Sub Inc. for $2 million. At that time, the book value of Sub Inc was $2.1 million. Sub Incs machinery had a fair value in excess of book value of $100,000 (10 year life), its land fair value exceeded its book value by $100,000 and it also had an unrecorded patent of $100,000 (10 year life). Any remaining balance is attributable to goodwill. Parent Corp uses the initial value method to account for its investment.

Below is additional information related to Parent Corp and Sub Inc.

Sale of inventory from Sub Inc to Parent Corp

Year	Sub Inc Cost	Sale Price to Parent	Ending Inventory
2016	80,000	100,000	20,000
2017	100,000	125,000	40,000

Additional 2016 Information

On January 1, 2016, Parent Corp sold machinery with a gross book value of $30,000, accumulated depreciation of $20,000, and a remaining life of 5 years to Sub Inc for $32,000.

On December 31, 2016, Parent Corp sold land with a cost of $45,000 to Sub Inc for $40,000.

At December 31, 2016, Sub Inc still owed Sub Inc $30,000 related to the inventory purchases.

Additional 2017 Information

On Jan 1, 2017, Parent Corp sold machinery with a gross book value of $40,000, accumulated depreciation of $30,000, and a remaining life as of Jan 1, 2017 of 2 years to Sub Inc for $20,000.

On August 15, 2017, Parent Corp sold land with a cost of $30,000 to Sub Inc for $40,000.

At December 31, 2015, Parent Corp owed Sub Inc $10,000 related to inventory purchases

1. Prepare a consolidation worksheet for 2016 that accurately reflect the consolidated total. Show your calculation of non-controlling interest net income

2. Prepare a consolidation worksheet for 2017 that accurately reflect the consolidated total. Show your calculation of non-controlling interest net income.