Parent Corp bought 80% of Sub Corp on January 1, 2019, paying $200,000. Any excess differential at this date was attributed 30% to patent (with a 5 year remaining life) and 70% to goodwill.

Data from the balance sheets of the two companies at the date of acquisition:

Parent Corp

Sub Corp

Cash

$ 60,000

$ 30,000

A/R

180,000

10,000

Inventory

70,000

30,000

Patent

0

80,000

PP&E

220,000

190,000

A/D

(100,000)

(20,000)

Investment in sub

200,000

0

Total Assets

$620,000

$320,000

A/P

$180,000

$ 35,000

Bonds Payable

90,000

60,000

Common Stock

125,000

45,000

Retained Earnings

235,000

180,000

Total Liabilities & Equity

$630,000

$320,000

In the year following the acquisition, the sub reported net income of $55,000 and paid dividends of $5,000 . Excluding the income from its sub, the parent reported net income of $90,000.

Please answer the following questions:

1. What income from sub (equity investment income) was reported by the parent on its own books and records for the first year?

2. What was the consolidated entity's net income for the first year?

3. What was the ending NCI value at the end of the first year?

4. What is the goodwill that will be on the consolidated financial statements?