On January, 1 20X2, Subsidiary LTD's stockholders' equity reported the following amounts:

5%, preferred stock, par value $100, cumulative and convertible, 10,000 shares authorized, 2,000 issued and outstanding, $200,000.

Common stock, par value $5, 500,000 authorized, 100,000 issued and outstanding, $500,000

Additional paid-in-capital: common stock, $175,000

Retained earnings: $160,000: (125,000+50,000-15,000)

On July 1, 20X2, Parent company purchased 60,000 common shares of Subsidiary LTD for $525,000. The remaining 25,000 common shares were trading at $8.75. The preferred stock was selling at par value. (The fair value of the preferred stock was equal to its capital account.) On December 18, 20X2, Subsidiary LTD entered in an agreement to ship goods to Parent company with a ten percent markup. The first shipment costing $20,000 was sold on account to Parent company for $22,000. (20,000+0.10 (20,000))

Subsidiary LTD reported income of $5,000 per month and dividends of $25,000 were declared and distributed in December. Parent company did not sell the inventory until 20X3.

Required: Prepare an acquisition schedule assuming any excess is associated with equipment with a remaining useful life of four years. Assume there was no amount in equipment to start.

Required: Prepare all journal entries for Parent Company's investment for 20X2 under the equity method.

Required: Calculate net income attributed to the non-controlling interest.