On January 1, Year 1, Parent bought 75% of the shares of Kid for $160 million. At the time, the fair value of the 25% noncontrolling interest was $50 million.

The equity of Kid on the date of acquisition was $150 million. Its common stock = $10 million, paid-in capital = 20 million, and retained earnings = $120 million. All assets and liabilities had fair value equal to book value, except Kid owned a patent with a fair value $ of 15 million and no book value. It has 5 years of remaining life.

During Year 1, Kid reported revenues of $20 million and expenses of $16 million. It declared dividends of $300,000. Parent had net income from its own operations (ignoring its interest in Kid) of $60 million.

1. As of the date of acquisition, what consolidation entry or entries are needed?
2. At the end of the year, what is the amount of income that is allocable to the controlling interest, that is, the shareholders of the parent company, including both its own income and its share of the subs income?