The following balances were taken from the records of S Company Common stock (1/1/13 and 12/31/13) Retained earnings 1/1/13 Net income for 2016 Dividends declared in 2016 Retained earnings, 12/31/13 Total stockholders' equity on 12/31/13 P Company purchased 75% of Company's common stock on January 1, 2014 for $900,000 The difference between implied value and book value is attributable to assets with a remaining $720,000 $160,000 180,000 (40,000) 300,000 $1,020,000 Required: A. Compute the difference between cost/implied) and book value applying 1 Parent company theory. 2 Economic unit theory . Assuming the economic unit theory 1 Compute noncontrolling interest in consolidated income for 2016. 2 Compute noncontrolling interest in net assets on December 31, 2016. The following balances were taken from the records of S Company Common stock (1/1/13 and 12/31/13) Retained earnings 1/1/13 Net income for 2016 Dividends declared in 2016 Retained earnings, 12/31/13 Total stockholders' equity on 12/31/13 P Company purchased 75% of Company's common stock on January 1, 2014 for $900,000 The difference between implied value and book value is attributable to assets with a remaining $720,000 $160,000 180,000 (40,000) 300,000 $1,020,000 Required: A. Compute the difference between cost/implied) and book value applying 1 Parent company theory. 2 Economic unit theory . Assuming the economic unit theory 1 Compute noncontrolling interest in consolidated income for 2016. 2 Compute noncontrolling interest in net assets on December 31, 2016