Park Company purchased 90% of the stock of

Salt Company on January 1, 2014, for $465,000,

an amount equal to $15,000 in excess of the

book value of equity acquired. This excess

payment relates to an undervaluation of Salt

Companys land. On the date of purchase, Salt

Companys retained earnings balance was

$50,000. The remainder of the stockholders

equity consists of no-par common stock. During

2018, Salt Company declared dividends in the

amount of $10,000, and reported net income of

$40,000. The retained earnings balance of Salt

Company on December 31, 2017, was $160,000.

Park Company uses the cost method to record

its investment.

Required:

a. NCI in Income

b. Calculate the controlling interest in income for 2018, net income for park company in 2018 is 88,000 and park declared dividend in the amount of 28,000