prepare journal entries for parent company by eqitiy method

Zach purchased 75% of David on January 1, 2013 paying $500,000. The remaining 25% Of David shares continued to trade at a total of $215,000. David reported common stock of $280,000 on that date with retained earnings of $200,000. A patent was undervalued in the financial records by $30,000 with a 5 year remaining life. Any excess over the patent amount was allocated to goodwill. Goodwill was allocated proportionately to the parent and the subsidiary. David earns net income and declares dividends as follows: income for 2013, 2014, and 2015 was $75,000, $96,000, and 110,000 respectively. Dividends for 2013, 2014, and 2015 were $39,000, $44,000, and $60,000 respectively. Required: 1. Prepare a schedule reflecting the allocation of the goodwill to the parent and the subsidiary. 2. Prepare a schedule showing the balance in the investment account on the parent's books as of December 31, 2015. 3. Prepare entries to consolidate the two entities as of December 31, 2015 if the parent used the equity method to account for this investment. 4. If Zach has used the partial equity method to account for the investment, prepare the journal entry required for the 2015 consolidation. 5. If Zach has used the initial value method, prepare the journal entry needed for the 2015 consolidation 6. What is the balance of the non-controlling interest at December 31, 2015? Zach purchased 75% of David on January 1, 2013 paying $500,000. The remaining 25% Of David shares continued to trade at a total of $215,000. David reported common stock of $280,000 on that date with retained earnings of $200,000. A patent was undervalued in the financial records by $30,000 with a 5 year remaining life. Any excess over the patent amount was allocated to goodwill. Goodwill was allocated proportionately to the parent and the subsidiary. David earns net income and declares dividends as follows: income for 2013, 2014, and 2015 was $75,000, $96,000, and 110,000 respectively. Dividends for 2013, 2014, and 2015 were $39,000, $44,000, and $60,000 respectively. Required: 1. Prepare a schedule reflecting the allocation of the goodwill to the parent and the subsidiary. 2. Prepare a schedule showing the balance in the investment account on the parent's books as of December 31, 2015. 3. Prepare entries to consolidate the two entities as of December 31, 2015 if the parent used the equity method to account for this investment. 4. If Zach has used the partial equity method to account for the investment, prepare the journal entry required for the 2015 consolidation. 5. If Zach has used the initial value method, prepare the journal entry needed for the 2015 consolidation 6. What is the balance of the non-controlling interest at December 31, 2015