On January 1, 2019 Vacker Co. acquired 70% of Carper Inc. by paying $650,000. On this date, the NCI fair value was $162,000. Carper reported common stock on the date of $420,000 with retained earning of $252,000. A building was undervalued in the company's financial records by $28,000. This building had a ten-year remain life. Copyrights of $80,000 were to be recognized and amortized over 20 years.

Carper earned income and paid cash dividends as follows:

Year

Net Income

Dividends Paid

2018

$105,000

$54,600

2019

134,400

61,600

2020

154,000

84,000

On December 31, 2020, Vacker owed $30,800 to Carper. There have been no changes in Carper's common stock account since the acquisition.

1.Show the computation of Excess, allocation of Excess and amortization on Excess.

2.If the equity method had been applied by Vacker for this acquisition, please make following consolidation entries needed as of December 31, 2020?