Question 1: Pampas Inc. owns 19,000 shares of Sierra Company (which is 95% of its outstanding common shares) and accounts for its investment using the equity method. On December 31, 2015, Sierra Company's shareholders' equity consisted of common shares of $200,000 and retained earnings of $340,000. On that date, the balance in Pampas' investment in Sierra Company account was $640,000. The acquisition differential at that date was allocated 50% to land, 25% to some equipment with a remaining useful life of five years and rest to goodwill. During 2016, Sierra Company reported a net income of $300,000 and declared and paid dividends of $140,000. On January 1, 2016, Pampas sold 3,800 of its shares in Sierra Company for proceeds of $133,000. Pampas values the non-controlling interest in its subsidiary at its fair value, proportionate to the price paid for its controlling interest. Required: a) Calculate the non-controlling interest in Sierra Company that would be included in Pampas Inc.'s consolidated balance sheet at December 31, 2016. b) Calculate the non-controlling interest in the consolidated net income of Pampas and its subsidiary for the year ended December 31, 2016. Question 2: Pueblo Corporation acquired a 70% interest in Hacienda Limited on January 1, 2018, for $196,000 when Hacienda had common shares of $200,000 and retained earnings of $40,000. Half of the acquisition differential was allocated to capital assets with a remaining useful life of five years on that date with the balance of the acquisition differential considered to be goodwill. Pueblo Corporation uses the cost method to account for its investment in Hacienda Limited and values the non-controlling interest in its subsidiary at its fair value, proportionate to the price paid for its controlling interest. On June 30, 2018, Pueblo acquired a further 20% interest by purchasing additional shares from the non-controlling shareholders for a consideration of $64,000. During 2018, Pueblo had net income of $248,000 and paid dividends of $124,000 and Hacienda had net income of $60,000 and paid dividends of $40,000. Both companies earned their income evenly over the year and declared their dividends on October 31, 2018. Pueblo had retained earnings of $520,000 at the end of 2018. Required: a) Calculate consolidated retained earnings on December 31, 2018. b) Calculate non-controlling interest on December 31, 2018. entered into the following transactions during 2015: he principal amount,