Presley Pools Inc. acquired 60 percent of the common stock of Jacobs Jacuzzi Company on December 31, 20X6, for $2,390,000. At that date, the fair value of the noncontrolling interest was $1,790,000. The full amount of the differential was assigned to goodwill. On December 31, 20X7, Presley Pools management reviewed the amount attributed to goodwill and concluded an impairment loss of $22,000 should be recognized in 20X7. On January 2, 20X7, Presley purchased 20 percent of the outstanding preferred shares of Jacobs for $78,600.

In its 20X6 annual report, Jacobs reported the following stockholders' equity balances at the end of the year:

Preferred Stock (10 percent, $100 par)	$	380,000
Premium on Preferred Stock		7,000
Common Stock		690,000
Additional Paid-In CapitalCommon		890,000
Retained Earnings		1,580,000
Total Stockholders' Equity	$	3,547,000

The preferred stock is cumulative and has a liquidation value equal to its call price of $101 per share. Because of cash flow problems, Jacobs declared no dividends during 20X6, the first time it had missed a preferred dividend. With the improvement in operations during 20X7, Jacobs declared the current stated preferred dividend as well as preferred dividends in arrears; Jacobs also declared a common dividend for 20X7 of $15,000. Jacobs reported net income for 20X7 was $280,000.

Questions:

Compute the total amount that should be reported as noncontrolling interest in the December 31, 20X7, consolidated balance sheet.

Prepare all consolidation entries that should appear in a worksheet to prepare a complete set of 20X7 consolidated financial statements for Presley Pools and its subsidiary.

Please show your work.