On December 31, Year 5, the accountant of Regent Corporation prepared a reconciliation (see below), which was used in the preparation of the consolidated financial statements on that date.

Additional Information
€¢ On December 31, Year 6, Argyle reported a net income of $50,000 (earned evenly throughout the year) and declared dividends of $20,000.
€¢ On April 1, Year 6, Argyle issued an additional 2,000 common shares at a price of $75 each. Regent did not acquire any of these shares.
€¢ On October 1, Year 6, because the market price of Argyle€™s common shares had fallen, Regent purchased 1,300 shares of Argyle on the open market at $60 per share. The decline in value is not believed to be permanent. Any acquisition differential was allocated 20% to land, 35% to equipment, and 45% to trademark.
Required:
(a) Prepare an acquisition-differential amortization schedule for Year 6 while showing the controlling and non-controlling interests€™ share of the changes occurring throughout the year.
(b) Now assume that Regent is a private company, uses ASPE, and chooses to use the equity method to report its investment in Argyle. Calculate the equity method balance in the investment in Argyle account as at December 31, Year 6, and reconcile this balance to Argyle€™s shareholders€™ equity and to the unamortized acquisition differential.

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Investment in Argyle Ltd.-equity method balance Shareholders' equity of Argyle $315,000 50,000 175,000 225,000 8,000 common shares Retained earnings Regent's ownership Regent's share of unamortized acquisition differential Non-controlling interest's share of unamortized acquisition differential Total unamortized acquisition differential Allocated: Land 90% 202,500 112,500 12,500 $125,000 $28,333 44,444 52,223 $125,000 Equipment-remaining useful life, 8 years Trademarks-remaining useful life, 10 years