Sales P 8-6 Midyear purchase of additional Interest, preacquisition income Pot Corporation purchased a 70 percent interest in Sad Corporation on January 2, 2011, for 598.000, when Sod had capital stock of $100.000 and retained carnings of $20.000. On June 30, 2012, Potpur- chased an additional 20 percent interest for 537,000 Comparative financial statements for Pot and Sod Corporations at and for the year ended December 31, 2012, are as follows in thousands): Por Sod Combined Income and Retained Earnings Statement for the Year Ended December 31 $200 $200 Income from Sod 24 Cost of sales (250) (150) Expenses (30) Net income 30 Add: Beginning retained camings 200 Less Dividends. December 1 (60) (10) Retained earnings. December 31 $ 70 Balance Sheet ar December 31 Other assets 5429 $200 Investment in Sod 171 Total assets 5600 $200 Liabilities $ 40 $30 Common stock 300 Retained caring 260 70 Total equities $60 $200 (50) 124 $200 100 REQUIRED 1. Prepare a schedule explaining the $17.000 balance in Put's Investment in Sod account at December 31, 2012 2. Compute goodwill that will appear in the December 31, 2012. consolidated balance sheet. 3. Prepare a schedule computing consolidated net income for 2012. Consolidations-Changes in Ownership Interests 269 4. Compute consolidated retained earnings on December 31, 2012. 5. Compute noncontrolling interest on December 31, 2012