Problem 1(40 points) On January 1, 2014, Paterson Company purchased 70% of the common stock of Smith Company for $420,000. At that time, Smith's stockholders' equity consisted of $80,000 of Common stock, 560,000 of Other contributed capital and $240,000 of Retained earnings. Any difference between impled and book value relates to Smith's land. Paterson uses the cost method to record its investment in Smith. Its fiscal year ends on December 31 Additional information for both companies for 2020 follows: Paterson Smith Common stock $300,000 $80,000 Other contributed capital 120,000 60,000 Retained Earnings, 1/1/2020 240.000 240,000 Net Income for 2020 262,000 164,000 Diviends declared in 2020 40,000 16,000 Required a. Prepare all the necessary eliminating entries on a consolidated statements workpaper on 12/31/2020 b. Calculate the consolidated net income for 2020 c. Calculate the noncontrolling interest in net income for 2020 Problem 1(40 points) On January 1, 2014, Paterson Company purchased 70% of the common stock of Smith Company for $420,000. At that time, Smith's stockholders' equity consisted of $80,000 of Common stock, 560,000 of Other contributed capital and $240,000 of Retained earnings. Any difference between impled and book value relates to Smith's land. Paterson uses the cost method to record its investment in Smith. Its fiscal year ends on December 31 Additional information for both companies for 2020 follows: Paterson Smith Common stock $300,000 $80,000 Other contributed capital 120,000 60,000 Retained Earnings, 1/1/2020 240.000 240,000 Net Income for 2020 262,000 164,000 Diviends declared in 2020 40,000 16,000 Required a. Prepare all the necessary eliminating entries on a consolidated statements workpaper on 12/31/2020 b. Calculate the consolidated net income for 2020 c. Calculate the noncontrolling interest in net income for 2020