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On January 1, 2020, Father Corporation exchanged $390,000 for 60% of Son Corporation. The consideration transferred by Father provided a reasonable basis for assessing the

On January 1, 2020, Father Corporation exchanged $390,000 for 60% of Son Corporation. The consideration transferred by Father provided a reasonable basis for assessing the total 1/1/20, fair value of Son Corporation. Sons acquisition date balance sheet follows:

Current assets

$

15,400

Liabilities

$

233,000

Property and equipment (net)

269,400

Common stock

100,000

Patents

208,200

Retained earnings

160,000

Total Assets

$

493,000

Total Liab and SE

$

493,000

On January 1, 2020, Father assessed the carrying amount of Sons equipment (5-year remaining life) to be undervalued by $53,000. Father also determined that Son possessed an unrecorded customer base (10-year remaining life) worth $327,200. Sons acquisition-date fair values for its current assets and liabilities were equal to their carrying amounts. Any remaining excess of Sons acquisition-date fair value over its book value was attributed to goodwill.

The companies financial statements for the year ending December 31, 2021, follow:

Father

Son

Sales

$

(617,700

)

$

(442,500

)

Cost of goods sold

313,100

207,000

Operating expenses

150,500

111,500

Equity in Son earnings

(48,408

)

0

Separate company net income

$

(202,508

)

$

(124,000

)

Retained earnings 1/1

$

(821,600

)

$

(334,300

)

Net income

(202,508

)

(124,000

)

Dividends declared

50,000

30,000

Retained earnings 12/31

$

(974,108

)

$

(428,300

)

Current assets

$

216,400

$

95,500

Investment in Son

498,996

0

Property and equipment (net)

851,000

273,000

Patents

151,800

161,500

Total assets

$

1,718,196

$

530,000

Liabilities

$

(424,088

)

$

(1,700

)

Common stockFather

(320,000

)

0

Common stockSon

0

(100,000

)

Retained earnings 12/31

(974,108

)

(428,300

)

Total liabilities and owners equity

$

(1,718,196

)

$

(530,000

)

At year-end, there were no intra-entity receivables or payables.

Required

1. Prepare SAIDE worksheet entries to consolidate these two companies as of December 31, 2021.

2. Determine the 12/31/21 Non-Controlling Interest Balance.

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