On January 2, 2020, X Co. purchased an 85% interest in Y Co. for $1,785,000. At that time Y Co.'s capital structure consisted of Capital Stock $800,000, Other Contributed Capital $600,000, and Retained Earnings $550,000. At the time of the business combination all of Y Co.'s assets and liabilities were in line with their fair values except that inventory was overvalued by $50,000, and equipment was undervalued by $25,000. The remaining allocation was allocated to patents which are amortized over 10 years. 60% of the inventory was sold in the year of the business combination and the rest was sold after the year of the business combination, the equipment has a useful life of 5 years. The following is a partial balance sheet of X Co. and Y Co. as of December 31, 2021: X Co Y Co Cash Account Receivable Inventories 9,400 513,000 142,000 273,000 411,000 361,000 Equipment 520,000 632,000 Vehicle 300,000 325,000 Cost of Sales 575,000 240,000 Operating Expense 180,000 95,000 Dividend 97,000 32,000 Account Payable 99,000 87,000 Capital Stock 1,000,000 800,000 Other Contributed Capital 1,233,200 600,000 1/1 Retained Earnings 750,000 584,000 Sales 910,000 400,000 Required: 1. Calculate the CAD Schedule for 2020. 2. Calculate the NCI in Income for 2021. 3. Prepare the elimination journal for 2021. 4. Prepare the consolidated statement of work paper for 2021 using the Cost Method. 5. If the ownership interest of X Co in Y Co changes, explain which parties may cause the interest of X Co in Y Co to change. Also explain the actions taken by these parties that caused X Co's interest in Y Co to change.