On January 1, 2019, Pinnead Incorporated paid $300,000 for an 80% interest

in Shalle Company. At that time, Shalle's total book value was $300,000.

Patents were undervalued in the amount of $10,000. Patents had a 5-year

remaining useful life, and any remaining excess value was attributed to

goodwill. The income statements for the year ended December 31, 2019 of

Pinnead and Shalle are summarized below:

Pinnead Shalle

Sales $800,000 $300,000

Income from Shalle 78,400

Cost of sales (100,000) (100,000)

Depreciation (70,000) (30,000)

Other Expenses (130,000) (70,000)

Net Income $578,400 $100,000

Requirements:

1. Calculate the goodwill that will appear in the consolidated balance sheet of

Pinnead and Subsidiary at December 31, 2019.

2. Calculate consolidated net income for 2019.

3. Calculate the noncontrolling interest share for 2019.

4. Prepare consolidated income statement for 2019