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1. AS that, on January 1 2011 Bullins Company dovanuary 1, 2011, a Lydel Company acquires a 60% interest in Lydel Company acquire Bullins' Stockholders' Equity on the acquisition date. The a purchase price that was S600.000 over the book value of the the following (A) assets: * Equity on the acquisition date. The Lydel allocated the excess to ALAsset Initial Fair Value Useful Life (years) Patent 400,000 Goodwill 200.000 Indefinite $600,000 i ne parent and the subsidiary report the following financial statements at December 31, 2017: Income Statement Lydell Sales $4,000,000 Cost of goods sold (2.800.000) Gross Profit 1,200,000 Equity income (in Sub's Earnings) 202,800 Operating expenses (760,000) Net income $ 642.800 Bullins $2,700,000 (1.620.000) 1,080,000 (702,000) $ 378.000 Statement of Retained Earnings Lydell BOY Retained Earnings $2,009,600 Net income 642,800 Dividends (128,560) EOY Retained Earnings $2.523.840 Bullins $1,395,000 378,000 (56,700) $1.716.300 Balance Sheet Lydell Bullins $ Assets: Cash Accounts receivable Inventory Investment (Equity) PPE, net 68,100 626,400 804,600 $ 553,060 512,000 776,000 1,464,780 2.932,800 $6.238.640 1.848,600 $3,347,700 Liabilities and Stockholders' Equity: Current Liabilities Long-term Liabilities Common Stock APIC Retained Earnings $ 574,800 2,000,000 654,000 486,000 2.523.840 $6.238.640 $ 626,400 600,000 180,000 225,000 1.716.300 $3.347.700 Prepare the following consolidation journal entries. 1) To eliminate the beginning balances in subsidiary's equity (S) 2) To Allocate beginning-of-year Patent and Goodwill in consolidated entry A to the controlling and noncontrolling interest 3) To record amortization of patent (E) 4) Determine Non-controlling interest at the year-end balance

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