On January 2, 2019, Parca Corporation acquired 70 percent interest in Saif Corporation on for $2,800,000. Parca's capital stock and retained earnings were $7,200,000 and $3,200,000 respectively, while Saif's capital stock and retained earnings were $2,000,000 and $400,000 respectively. Net income and dividends for 2019 for the affiliated companies were as follows: (in thousands): Parca Saif Net income $1,200 $360 Dividends declared 720 200 Dividends payable December 31, 2019 360 100

Required: Calculate the amounts that should appear in the consolidated balance sheet on December 31, 2019 for the following items:

Capital stock c. Noncontrolling interest b. Goodwill d. Dividends payable (Support your answer by writing any required equation and/or required explanation) (7.5 Marks

2) At December 31, 2020, The Comparative income statements of Portland Corporation and Sand Corporation shows the following (in thousands): Portland Sand Sales $6,400 $2,600 Income from Sand 768 Total revenue 7,168 2,600 Less: Cost of goods sold 3,600 800 Operating expenses 1,600 800

Additional information 1. Portland Corporation acquired 80 percent of Sand for $3,200,000 on January 1, 2018, when Sands stockholders equity at book value was $2,800,000. 2. The excess of the cost of Portlands investment in Sand over book value acquired was allocated $120,000 to undervalued inventories that were sold in 2018, $160,000 to undervalued equipment with a four-year remaining useful life, and the remainder to goodwill. Required: Prepare a consolidated income statement for Portland Corporation and Subsidiary for the year ended December 31, 2020. (7.5 marks)