On January 1, 2018, Primair Corporation loaned Vista Company $356,000 and agreed to guarantee all of Vistas long-term debt in exchange for (1) decision-making authority over all of Vistas activities and (2) an annual cash payment of 25 percent of Vistas revenues. As a result of the agreement, Primair is the primary beneficiary of Vista (a variable interest entity). Primairs loan to Vista stipulated a 7 percent (market) rate of interest to be paid annually.

On January 1, 2018, Primair estimated that the fair value of Vistas equity shares equaled $140,000 while Vistas book value was $51,300. Any excess fair over book value at that date was attributed to Vistas trademark with an indefinite life.

Because Primair owns no equity in Vista, all of the acquisition-date excess fair over book value is allocated to the noncontrolling interest.

Vista paid Primair 25 percent of its 2018 revenues at the end of the year. On December 31, 2018, Primair and Vista submitted the following statements for consolidation. Parentheses indicate credit balances.

	Primair				Vista
Revenues		(895,500	)			(226,900	)
Cost of good sold		652,600				90,500
Other operating expenses		82,900				30,100
Interest income		(24,920	)			0
Interest expense		0				24,920
Net income		(184,920	)			(81,380	)
Retained earnings, 1/1		(1,611,000	)			(36,300	)
Net income		(184,920	)			(81,380	)
Dividends declared		271,200				0
Retained earnings, 12/31		(1,524,720	)			(117,680	)
Current assets		475,800				60,400
Loan receivable from Vista		356,000
Equipment (net)		850,000				634,300
Trademark		0				54,300
Total assets		1,681,800				749,000
Current liabilities		(107,080	)			(21,800	)
Long-term debt		0				(238,520	)
Loan payable to Primair						(356,000	)
Common stock		(50,000	)			(15,000	)
Retained earnings, 12/31		(1,524,720	)			(117,680	)
Total liabilities and equity		(1,681,800	)			(749,000	)

In computing the amount of Vista's net income attributable to the noncontrolling interest,

• Vista's net income should be reduced by the 25% revenue allocation to Primair.
• Interest expense paid to Primair is not excluded from Vista's net income because it is a contractual distribution of Vista's net income to Primair.

Prepare the December 31, 2018, consolidation worksheet for Primair and Vista.

NCI Consolidated Balances Revenues $ PRIMAIR AND VISTA Consolidation Worksheet Year Ended December 31, 2018 Consolidation Entries Primair Vista Debit Credit (895,500) $ (226,900) 652,600 90,500 82,900 30,100 (24,920) 24,920 (184,920) S (81,380) Cost of good sold Other operating expenses Interest income $ $ (36,300) (81,380) Interest expense Net Income Consolidated net income to noncontrolling interest to Primair Retained earnings, 1/1 Net income Dividends declared Retained earnings, 12/31 Current assets Loan receivable from Vista Equipment (net) Trademark Total assets $ (1,611,000) (184,920) 271,200 $ (1,524,720) $ 475,800 356,000 850,000 $ $ (117,680) 60,400 $ $ 1,681,800 (107,080) Current liabilities 634,300 54,300 749,000 (21,800) (238,520) (356,000) (15,000) (50,000) Long-term debt Loan payable to Primair Common stock Noncontrolling interest Retained earnings, 12/31 Total liabilities and equity (1,524,720) $ (1,681,800) $ (117,680) (749,000)