X Co$.$ acquired $80\%$ of Y Co$.$ on January $1,$ Year $3,$ when Y Co$.$ had common shares of $$230,000$ and retained earnings of $$83,000.$ The acquisition differential was allocated as follows on this date:

Inventory $ $73,000$

Equipment $(15-$year life$)64,500$

Total acquisition differential $ $137,500$

Since this date the following events have occurred:

Year $3$

Y Co$.$ reported a net income of $$163,000$ and paid dividends of $$38,000.$

On July $3,$ X Co$.$ sold land to Y Co$.$ for $$138,000.$ This land was carried in the records of X Co$.$ at $$88,000.$

On December $31,$ Year $3,$ the inventory of X Co$.$ contained an intercompany profit of $$43,000.$

X Co$.$ reported a net income of $$530,000$ from its own operations.

Year $4$

Y Co$.$ reported a net loss of $$29,000$ and paid dividends of $$6,000.$

Y Co$.$ sold the land that it purchased from X Co$.$ to an unrelated company for $$163,000.$

On December $31,$ Year $4,$ the inventory of Y Co$.$ contained an intercompany profit of $$25,000.$

X Co$.$ reported a net income from its own operations of $$85,000.$

Required:

Assume a $40\%$ tax rate.

$($a$)$ Prepare X Co$.$s equity method journal entries subsequent to the date of acquisition for each of Years $3$ and $4.($Input all values as positive numbers. If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Input all values as positive numbers.$)$

$($b$)$ Calculate consolidated net income attributable to X Co$.$s shareholders for each of Years $3$ and $4.($Omit $ sign in your response.$)$

Consolidated Net Income

Year $3$ $

$500000$

Year $4$ $

$($c$)$ Prepare a statement showing the changes in non$-$controlling interest in each of Years $3$ and $4.($Net loss amount should be indicated with a minus sign and input all other amounts as positive values. Omit $ sign in your response.$)$

Changes in Non$-$controlling Interest

Years $3$ and $4$

Balance Jan. $1$ Year $3$

$

Allocation of Y Co$.\text{'}$s adjusted net income Year $3$

Less: Dividends

Balance Dec. $31,$ Year $3$

Allocation of Y Co$.\text{'}$s adjusted net loss Year $4$

Less: Dividends

Balance Dec. $31,$ Year $4$

$

$($d$)$ Now assume that X Co$.$ is a private company, uses ASPE, and chooses to use the equity method. Calculate the balance in the Investment in Y Co$.$ account as at December $31,$ Year $4.($Omit $ sign in your response.$)$

Investment in Y Co$.-$ December $31,$ Year $4$ $