On January 1, 20X5, Big Ltd. purchased 80% of the shares of Small Ltd. for $ 1,400,000 and, on the same day, Small Ltd. purchased 60% of the shares of Smaller Ltd. for $ 930,000. Any excess of the purchase price was allocated to goodwill.

There were no intercompany transactions.

Required
Calculate the balance of non-controlling interest as it would be shown on the consolidated SFP of Big Ltd., at December 31, 20X5, under the entitymethod.

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At January 1, 20x5 Big Ltd Small Ltd. maller Ltd. Shares Retained earmings 1,950,000 2,300,000 $4,250,000 1,600,000 1,910,000 3,510,000 500,000 730,000 1,230,000 During 20X5 Net income (cost basis) Dividends paid $800,000 120,000 $600,000 100,000 $300,000 40,000