Royce Co. acquired 60% of Park Co. for $420,000 on December 31, 2020 when Park's...
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Royce Co. acquired 60% of Park Co. for $420,000 on December 31, 2020 when Park's book value was $560,000. On the date of acquisition, Park had equipment (with a five-year life) that was undervalued in the financial records by $140,000. One year later, the following selected figures were reported by the two companies. Additionally, no dividends have been paid.
Royce Co. Book value
Park Co. Book value
Park Co. Fair Value
Current assets
$868,000
$420,000
$448,000
Equipment
364,000
280,000
400,000
Buildings
574,000
210,000
210,000
Liabilities
(546,000)
(168,000)
(168,000)
Revenues
(1,260,000)
(560,000)
Expenses
700,000
450,000
Investment income
Not Given
a.) What is the non-controlling interest's share of the subsidiary's net income for the year ended December 31, 2021?
b.) What is the ending balance of the non-controlling interest in the subsidiary at December 31, 2021?
c.) What is the consolidated balance of the Equipment account at December 31, 2021?
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