On January 2, 2020, Paul Inc. purchased 90% of Stan Co's outstanding common stock for $600,000. On that date, Stan's stockholders' equity equaled $370,000 and the fair value of the noncontrolling interest was $100,000.The fair values of Stan's identifiable assets and liabilities equaled their carrying values except for a patent with a ten year remaining life which was undervalued by$60,000.

On September 4, 2020, Stan paid cash dividends of $60,000.

On December 31, 2020, Paul recorded its equity in Stan's earnings.

On January 3, 2020, Paul sold equipment with an original cost of $90,000 and a carrying value of $40,000 to Stan for $80,000. The equipment had a remaining life of four years and was depreciated using the straight-line method by both companies.

During 2020, Paul sold merchandise on account to Stan for $200,000, which included a profit of $70,000. At December 31,2020, 30% of this merchandise remained unsold. In addition 20% of the sale remains uncollected.

Required:

Calculate the requested amounts to be reported on Paul's consolidated financial statements for the year ended December 31,2020 and enter your answer on the examination answer sheet. Consider all transactions stated in the additional information.

Presented below are selected amounts from the separate unconsolidated financial statements of Paul Corp. and its 90%-owned subsidiary, Stan Co., at December 31, 2020. Paul Stan Selected income statement amounts $800,000 $660,000 Sales Cost of goods sold 500,000 300,000 Gain on sale of equipment 40.000 Equity in subsidiary net income ? Depreciation 30,000 20,000 Amortization 8,000 2,000 Selected balance sheet amounts Cash 60,000 20,000 Accounts receivable 80,000 90,000 Inventories 230,000 160,000 Patent (10 year remaining useful life) 80,000 18,000 Equipment 600,000 400,000 Accumulated depreciation (200,000) (100,000) Investment in Stan ? Accounts payable 90,000 80,000 Common stock (400,000) (200,000) Additional paid-in capital [300,000) (50,000) Retained earnings (400,000) (150,000) Paul Stan Selected statement of retained earnings amounts $270,000 $120,000 Beginning balance, January 1, 2020 Net income 230,000 90,000 Dividends paid 100,000 60,000 Additional information Note; in questions 1 & 2 disregard intra entity transactions in inventory and fixed assets. 1. Equity in subsidiary net income 2. 12/31/20 balance in the Investment in Stan before elimination 3. Cost of goods sold 4. Inventory 5. Goodwill 6. Equipment 7. Patent 8. Amortization expense 9. Depreciation expense 10. Noncontrolling interest assuming no upstream transactions 11. Accounts receivable 12. Assuming the subsidiary-Stan sold the inventory to Paul, compute the amount of the noncontrolling interest share of subsidiary net income. 13. Assuming the subsidiary-Stan sold equipment to Paul compute the noncontrolling interest share of subsidiary income. 14. Assuming Paul";s net income does not include equity income, compute consolidated net income