On January 2, 2014, Allen Shoes acquired 70% of the stock of Danner Footwear. It is now December 31, 2017, four years since the acquisition. Allen uses the complete equity method to account for its investment in Danner. Danners assets and liabilities were reported at amounts approximating fair value, except for previously unreported indefinite life identifiable intangible assets valued at $20,000. These intangible assets were impaired by $4,000 during the years 2014-2016, and are impaired by $1,200 during 2017. The goodwill recognized for this acquisition was $62,500, split between Allen and the noncontrolling interest in a 80:20 ratio. There has been no goodwill impairment during 2014-2016, but testing reveals goodwill impairment of $2,000 in 2017. Danner reported net income of $5,500 for 2017.

Required a) Calculate 2017 equity in net income b) Calculate 2017 noncontrolling interest in net income.

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