On January 1, 2016, Polar Bear Ice Cream Co (parent) acquired 85% of the voting common stock of Sloth Bear Co (subsidiary). On the acquisition date, the fair value of Sloth's identifiable net assets equaled their book values, except for $50,000 (fair value) for a customer list that had no book value), with an estimated life of 5 years, amortized on a straight-line basis. During 2017, Sloth recorded $90,000 (cash sales price) inventory sales to Polar, at a 40% gross profit rate. (Assume this was the first and only intercompany transaction between Sloth and Polar.) At the end of 2017, half of the $90,000 remained unsold (i.e., was still held by Polar). 2017 pre-consolidation financial statements are: Polar Bear (parent) Sloth Bear (subsidiary) Revenue $800,000 $300,000 Equity income 61,200 Expenses (200,000) (250.000) $611,200 Net income $100,000 Current assets $225,000 $75,000 Equity investment 129,200 Noncurrent assets 1,655,800 $2,010,000 95.000 $170,000 Total assets Liabilities 600,000 $30,000 510,000 50,000 Common stock & APIC Retained earnings Total liabilities & equity 90.000 900.000 $2,010,000 $170,000 a) Show how the $61,200 Equity Income was determined/calculated. b) Show how the $129,200 Equity Investment was determined/calculated. c) On the consolidated balance sheet, what would be the balance of the Noncontrolling Interest? On January 1, 2016, Polar Bear Ice Cream Co (parent) acquired 85% of the voting common stock of Sloth Bear Co (subsidiary). On the acquisition date, the fair value of Sloth's identifiable net assets equaled their book values, except for $50,000 (fair value) for a customer list that had no book value), with an estimated life of 5 years, amortized on a straight-line basis. During 2017, Sloth recorded $90,000 (cash sales price) inventory sales to Polar, at a 40% gross profit rate. (Assume this was the first and only intercompany transaction between Sloth and Polar.) At the end of 2017, half of the $90,000 remained unsold (i.e., was still held by Polar). 2017 pre-consolidation financial statements are: Polar Bear (parent) Sloth Bear (subsidiary) Revenue $800,000 $300,000 Equity income 61,200 Expenses (200,000) (250.000) $611,200 Net income $100,000 Current assets $225,000 $75,000 Equity investment 129,200 Noncurrent assets 1,655,800 $2,010,000 95.000 $170,000 Total assets Liabilities 600,000 $30,000 510,000 50,000 Common stock & APIC Retained earnings Total liabilities & equity 90.000 900.000 $2,010,000 $170,000 a) Show how the $61,200 Equity Income was determined/calculated. b) Show how the $129,200 Equity Investment was determined/calculated. c) On the consolidated balance sheet, what would be the balance of the Noncontrolling Interest