Part 1.

Use the following information for questions 1-3.

On January 3, 2015, Parvin Company acquired 80 percent of Sarah Corporations common stock for $344,000 in cash. At acquisition date, the book values and fair values of Sarahs assets and liabilities were equal, and the fair value of the non-controlling interest was equal to 20 percent of the total book value of Sarah. The stockholders equity accounts of the two companies at the acquisition date are:

Parvin Sarah

Common Stock ($5 par value) $500,000 $200,000

Additional Paid-in Capital 300,000 80,000

Retained Earnings 350,000 150,000

Total Stockholders equity $1,150,000 $430,000

Non-Controlling interest was assigned income of $11,000 in Parvins consolidated income statement for 2015.

1. Based on the preceding information, what amount will be assigned to the non-controlling interest on January 3, 2015, in the consolidated balance sheet?

2. Based on the preceding information, what is the stockholders equity in the consolidated balance sheet as of January 3, 2015?

3. Based on the preceding information, what will be the amount of net income reported by Sarah Corporation in 2015?

4. Maple Corporation and its subsidiary reported consolidated net income of $380,000 for the year ended December 31, 2015. Maple owns 75% of the common shares of its subsidiary, acquired at book value. Non-controlling interest was assigned income of $25,000 in the consolidated income statement for 2015. What is the amount of separate operating income reported by Maple for the year?

** All work needs to be shown Please.