P acquires 90% of the voting stock of S for $900,000 cash on the acquisition date of 1/1/21 without paying a control premium. Ss asset and liability accounts at the acquisition date are as follows:

Book Value Fair Value

Current assets $350,000 $350,000

Land 300,000 325,000

Buildings (20-year life) 500,000 600,000

Equipment (5-year life) 300,000 375,000

Patent (5-year life) 100,000 50,000

Liabilities (750,000) (750,000)

Common stock (100,000)

Paid-in capital (300,000)

Retained earnings (400,000)

S reported net income of $100,000 and paid dividends of $20,000 in 2021 and reported income of $60,000 and dividends of $12,000 in 2022. During 2021, S sold land to P and recorded a gain of $20,000; P still holds the land as of 12/31/22. In addition, P sold inventory to S in 2021 with a cost of $20,000 and a transfer price of $32,000; half was sold at year-end and half was sold during 2022. S sold inventory to P during 2022 with a cost of $25,000 and a transfer price of $75,000; 75% remained unsold as of 12/31/22.

P uses the equity method to account for its investment in S.

Required:

1. Prepare the journal entries required for consolidating the financial statements at the end of 2022.
2. Calculate the amount of non-controlling interest that should appear on the consolidated income statement for 2022.
3. Calculate the amount of non-controlling interest that should appear on the consolidated balance sheet as of 12/31/22.