Use the following information for Problems #11-15:

Preferred Stock with Dividends in Arrears: The stockholders equity of Sub Corporation at December 31, 2014, was as follows:

Equity Information @ 01/01/14
10% Cumulative Preferred Stock, $80 Par value; 20,000 shares outstanding (Callable @ $105; 1 year arrears)	$1,600,000
Common Stock, $10 Par, 100,000 shares outstanding	$1,000,000
Other Paid-in-Capital	$2,000,000
Retained earnings	$5,000,000
Total Equity at 0/01/14	$9,600,000

On January 1, 2010, Parent Corporation purchased 80 percent of Sub Corporations common stock at $100 per share. Subs assets and liabilities were recorded at their fair values when Parent acquired its 80 percent interest. Any fair value/book value differential is assigned to goodwill and is not amortized.

During 2014, Sub reported net income of $2,000,000 and paid dividends of $1,400,000.

11] Determine the book value that should be allocated to the Preferred and Common Stock at January 1, 2014 respectively.

Book Value of Preferred
Book Value of Common
Total Book Value:

12] Calculate the amount of goodwill that will be recorded from the sale.

Calculations of Goodwill:
Price Paid for Sub
Implied Fair Value of Sub
Less: Book Value of Common
Goodwill:

13] Calculate the CI and NCI ownership amounts at 01/01/2014.

CI NCI

C.I.Investment in Sub (Common Stock)
NCI Investment in Sub (Common Stock)
NCI ownership of Preferred Stock
Total Book Value:

14] Calculate the parents share of the Sub income for 2014:

C.I. share of Sub's Net Income	CI
C.I.Income from Sub (Common Stock)
NCI Income from Sub Preferred Stock
Total Income allocated to CI:

15] Calculate the Non-Controlling Interest share of the Subs income for 2014:

NCI share of Sub's Net Income	NCI
NCI Income from Sub (Common Stock)
NCI Income from Sub Preferred Stock
Total Income allocated to NCI: