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Shahidullah Research Co. acquired 60% of Nahar Beauty Co. for $420,000 on December 31, 2019 when Nahar's book value was $560,000. Shahidullahs stock was not

Shahidullah Research Co. acquired 60% of Nahar Beauty Co. for $420,000 on December 31, 2019 when Nahar's book value was $560,000. Shahidullahs stock was not actively traded. On the date of acquisition, Nahar had equipment (with a ten-year life) that was undervalued in the financial records by $140,000. One year later, the two companies provided the selected amounts shown below. Additionally, no dividends have been paid.

Shahidullah Co.

Nahar Co.

Book Value

Book Value

Fair Value

Current assets

$

868,000

$

420,000

$

448,000

Equipment

364,000

280,000

400,000

Buildings

574,000

210,000

210,000

Liabilities

(546,000

)

(168,000

)

(168,000

)

Revenues

(1,260,000

)

(560,000

)

Expenses

700,000

420,000

Investment income

Not Given

  1. What amount of consolidated net income for 2020 is attributable to Shahidullahs controlling

interest?

  1. What is the noncontrolling interest's share of the subsidiary's net income for the year ended

December 31, 2020?

  1. What is the ending balance of the noncontrolling interest in the subsidiary at December 31,

2020?

D. What is the consolidated balance of the Equipment account at December 31, 2020?

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