On January 1, 2016, Pichai Corporation acquired 80 percent of the outstanding voting stock of Sundar Company in exchange for $1,200,000 cash. At that time, although Sundar's book value was $925,000, Pichai assessed Sundar's total business fair value at $1,500,000.

The book values of Sundar's individual assets and liabilities approximated their acquisition date fair values except for the Patent account, which was undervalued by $350,000. The undervalued Patents had a five-year remaining useful life at the acquisition date. Any remaining excess fair value was attributed to Goodwill.

Sundar regularly sells inventory to Pichai. Below are details of the intra-entity inventory sales for the past three years:

Year Intra-Entity Sales Intra-Entity Ending Inventory at Transfer Price Yr Gross Profit Rate on Intra-Entity Inventory Transfers

2016 $125,000 $80,000 25%

2017 $220,000 $125,000 28%

2018 $300,000 $160,000 25%

Separate financial statements for these two companies as of December 31, 2018 follow:

Income Statement:

Pichai Sundar

Revenues (1,740,000) (950,000)

Cost of Goods Sold 820,000 500,000

Depreciation Expense 104,000 85,000

Amortization Expense 220,000 120,000

Interest Expense 20,000 15,000

Equity in Earnings of Sundar (124,000) 0

Net Income (700,000) (230,000)

Statement of Retained Earnings:

Retained Earnings, 1/1/2018 (2,800,000) (345,000)

Net Income (above) (700,000) (230,000)

Dividends Declared 200,000 25,000

Retained Earnings (12/31/2018) (3,300,000) (550,000)

Balance Sheet:

Cash 535,000 115,000

Accounts Receivable 575,000 215,000

Inventory 990,000 800,000

Investment in Sundar 1,420,000 0

Buildings and Equipment (net) 1,025,000 863,000

Patents 950,000 107,000

Total Assets 5,495,000 2,100,000

Accounts Payable (450,000) (200,000)

Notes Payable (545,000) (450,000)

Common Stock (900,000) (800,000)

Additional Paid-in Capital (300,000) (100,000)

Retained Earnings (12/31/2018) (3,300,000) (550,000)

Total Liabilities and Equity (5,495,000) (2,100,000)

1.Calculate the total Goodwill of Sundar Company and allocate it between the Controlling Interest and the Non-Controlling Interest.

2.Calculate the balance in Investment in Sundar account on 12/31/2017.

3.Prepare the Equity Method journal entries for 2018.

4.Prepare the T-account for Investment in Sundar and calculate the balance in this account on 12/31/2018.

5. Calculate the balance in Equity in Earnings of Sundar.

6.Calculate the Net Income Attributable to Noncontrolling Interest for 2018.

7.Calculate the balance in Non-Controlling Interest on 12/312018.

Using Excel, worksheet to consolidate the separate financial statements of Pichai and Sundar.

Please help with this homework question. Please explain on worksheet how you came up with numbers and what consolidation entry the pertain too.