The individual financial statements for Absom, Inc. and Deter Company for the year ended December 31, 2017, are shown below. Absom acquired an 80 percent interest in Deter on January 1, 2015, in exchange for various considerations totaling $1,025,000. At the acquisition date Deters book value was $1,125,000. Deter owned equipment that was undervalued at the date of acquisition by $50,000, with a ten-year remaining life. In addition, Deter had fully amortized trademarks with a remaining five-year life and a fair value of $80,000. Reported income and dividends for Deter for 2015 and 2016 are as follows:

Required: 1) Determine the method of consolidation used by Absom for the Deter acquisition. 2) Prepare the schedule that allocates the purchase price and determines the amount of Goodwill, if any, including the application of amortization of the unrecorded asset values. 3) Prepare all the consolidation worksheet adjustment entries for 2017, including any supporting schedules as necessary. 4) Prepare a consolidation worksheet for year-ended December 31, 2017, including posting the adjusting entries correctly. 5) Prepare a schedule supporting the entry for *C, adjusting Retained Earnings. 6) Provide a schedule supporting the allocation of assets to the non-controlling interest as of December 31, 2017. 7) Provide a schedule supporting the allocation of income to the non-controlling interest as of December 31, 2017.

Financial Statements of Absom and Deter:

Income Dividends $ $ 2015 235,000 40,000 $ $ 2016 262,00 37,0XXO Year ended December 31, 2017 Accounts Revenues Cogs Expenses Dividend Income Separate company net income Absom (1,725,000) 925,600 537,500 (28,000) (289,900) Deter (985,000) 598,000 216,000 (171,000) Retained Eamings 1/1 (865,000) Retained Eamings 1/1 Net Income Dividends paid Retained Eamings 12/31/17 (289,90/0) 85,0XXO (1,059,900) (795,000) (171,0XX 35,000 (931,000) 375,0XX 416,0XXO 28,000 Cash and receivables Inventory Prepaid expenses Investment in Deter Land, buildings and equip, net Total Assets 182,0XXO 237,6X0 45,000 1,025,000 1,012900 2,501,900 1,106,000 1,925,000 (187,000 (120,000) Accounts payble Notes payable Common Stock Additional PIC Retained Eamings 12/31/17 Total Liab and SE (500,000) (625,000) (1,089,900) (2,501,900) (144,000) (100,000) (400,000) (350,000) (931,000) (1.925,000) Income Dividends $ $ 2015 235,000 40,000 $ $ 2016 262,00 37,0XXO Year ended December 31, 2017 Accounts Revenues Cogs Expenses Dividend Income Separate company net income Absom (1,725,000) 925,600 537,500 (28,000) (289,900) Deter (985,000) 598,000 216,000 (171,000) Retained Eamings 1/1 (865,000) Retained Eamings 1/1 Net Income Dividends paid Retained Eamings 12/31/17 (289,90/0) 85,0XXO (1,059,900) (795,000) (171,0XX 35,000 (931,000) 375,0XX 416,0XXO 28,000 Cash and receivables Inventory Prepaid expenses Investment in Deter Land, buildings and equip, net Total Assets 182,0XXO 237,6X0 45,000 1,025,000 1,012900 2,501,900 1,106,000 1,925,000 (187,000 (120,000) Accounts payble Notes payable Common Stock Additional PIC Retained Eamings 12/31/17 Total Liab and SE (500,000) (625,000) (1,089,900) (2,501,900) (144,000) (100,000) (400,000) (350,000) (931,000) (1.925,000)