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On January 1, 2019, Monica Company acquired 80 percent of Young Company's outstanding common stock for $872,000. The fair alue of the noncontrolling interest at

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On January 1, 2019, Monica Company acquired 80 percent of Young Company's outstanding common stock for $872,000. The fair alue of the noncontrolling interest at the acquisition date was $218,000 Young reported stockholders' equity accounts on that date as follows: Common stock-$10 par value Additional paid in capital Retained earnings $ 100,000 se, eee 610, eee In establishing the acquisition value, Monica appraised Young's assets and ascertained that the accounting records undervalued a building (with a five-year remaining life) by $70,000. Any remaining excess acquisition-date fair value was allocated to a franchise agreement to be amortized over 10 years. During the subsequent years, Young sold Monica inventory at a 30 percent gross profit rate. Monica consistently resold this merchandise in the year of acquisition or in the period immediately following. Transfers for the three years after this business combination was created amounted to the following: Year 2819 2020 2021 Transfer Price $ 80,00 100,000 110,000 Inventory Remaining at Year-End (at transfer price) $ 30,000 32,000 39,000 In addition, Monica sold Young several pieces of fully depreciated equipment on January 1, 2020, for $56,000. The equipment had originally cost Monica $90,000. Young plans to depreciate these assets over a five-year period In 2021. Young ears a net income of $180,000 and declares and pays $55,000 in cash dividends. These figures increase the subsidiary's Retoined Earnings to a $940,000 balance at the end of 2021. During this same year, Monica reported dividend income of $44,000 and an investment account containing the initial value balance of $872,000. No changes in Young's common stock accounts have occurred since Monica's acquisition .. Prepare the 2021 consolidation worksheet entries for Monica and Young b. Compute the net income attributable to the noncontrolling interest for 2021

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