Problem \#2 (19 pts): On January 1, 2014, Cassandra Incorporated paid $300,000 for 60% of Hecuba Company's outstanding capital stock. Hecuba reported common stock on that date of $250,000 and retained earnings of $100,000. On that date, - Hecuba's equipment with a 5 -year remaining life was undervalued by $10,000; - Hecuba's buildings with a 10 -year remaining life was undervalued by $60,000; - Any remaining fair value/book value differential is allocated to goodwill. The income statements for the year ended December 31, 2014 of Cassandra and Hecuba are summarized below: Hecuba's net income and dividends paid the first two years that Cassandra owned them are shown below. Required (MUST show all your work to get full credit): 1) (6pts) Prepare a schedule to assign the difference between the fair value of the investment in Hecuba and the book value of the interest to identifiable and unidentifiable net assets AND to amortize identifiable net assets for each of the two years. MUST SHOW your calculations for: a. Total excess over book value calculation (including both implied value and book value of 100% Hecuba) b. Assigned amounts for identifiable net assets and goodwill c. Amortization expenses for 12/31/14 AND unamortized excess on 12/31/14 d. Amortization expenses for 12/31/15 AND unamortized excess on 12/31/15 2) (6pts) Prepare consolidated income statement for the year ending on December 31, 2014. Calculate Income from Hecuba on Cassandra's Income Statement for 2014. Calculate noncontrolling interest share and controlling interest share on the consolidated income statement for 2014. 3) (2pts) Calculate the noncontrolling interest share and Income from Hecuba for 2015. 4) (2.5pts) Calculate the noncontrolling interest that should be reported on the consolidated balance sheet at the end of 2014 and 2015. 5) (2.5pts) Assuming that Cassandra uses the equity method to record their investment in Hecuba, calculate the ending balance in the Investment in Hecuba account for 2014 and 2015