On January 1, 2017, Big Company bought a 15% interest in Small Company. The acquisition price of $195,000 reflected an assessment that all of Smalls accounts were fairly valued within the accounting records. During 2017, Small reported net income of $100,000 and paid cash dividends of $30,000. Big possessed the ability to influence significantly Smalls operations, and therefore, accounted for this investment using the equity method.

On January, 1 2018, Big acquired an additional 80% for $1,500,000 cash. The consideration transferred by Big in its second acquisition of Small represents the best available evidence for measuring the fair value of Small Company at January 1, 2018.

Also, as of January 1, 2018, Big assessed a $400,000 value to an unrecorded customer contract recently negotiated by Small. The customer contract is anticipated to have a remaining life of 4-years. Smalls other assets and liabilities were judged to have fair values equal to their book values. Big elects to continue applying the equity method to this investment for internal reporting purposes.

At December 31, 2018, the following financial information is available for consolidation:

BALANCE SHEET	Big		Small
	December 31, 2018		December 31, 2018
Current Assets	177,500		550,000
Investment in Small Company	?		0
Property, plant, and equipment	826,000		610,000
Patented Technology	850,000		410,000
Total Assets	?		1,570,000
Liabilities	1,300,000		90,000
Common Stock	900,000		550,000
APIC	180,000		220,000
R/E January 1, 2018	965,000		600,000
Net Income	?		150,000
Dividend Paid	(140,000)		(40,000)
Total Liabilities + Equity	?		1,570,000

INCOME STATEMENT	Big		Small
	2018		2018
Revenue	931,000		380,000
Operating Expenses	(615,000)		(230,000)
Income in Small's earning	?
Gain(Loss) on revaluation of Investment in Small to fair value	?
Net Income	?		150,000

Required:

1. Calculate the following amounts on Big pre-consolidation 2018 statement (10 points):
   1. Investment in Small
   2. Income in Smalls earnings
   3. Gain (Loss) on Revaluation of Investment in Small to fair value
2. Calculate the balance of NCI at December 31, 2018. Provide detail calculations (5 points).
3. Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2018 (25 points).