Johannes Inc. acquired 80 percent of Corner Brook Ltd. common shares on January 1, Year 4, for $720,000. At that date, the fair value of the noncontrolling interest was $180,000. Corner Brook’s balance sheet contained the following amounts at the time of the combination: 

During each of the next three years, Corner Brook reported net income of $100,000 and paid dividends of $40,000. On January 1, Year 6, Johannes sold 8,000 of the Corner Brook shares for $240,000 in cash. Johannes used the equity method in accounting for its ownership of Corner Brook.

Required 

(a) Compute the balance in the investment account reported by Johannes on January 1, Year 6, before its sale of shares. 

(b) Prepare the entry recorded by Johannes when it sold the Corner Brook shares. 

(c) Calculate consolidated net income attributable to the noncontrolling interest for Year 6 and noncontrolling interest at the end of Year 6.  

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Cash Accounts Receivable Inventory Construction Work in Progress Other Assets (net) Total Assets $ 60,000 130,000 30,000 940,000 440,000 $1,600,000 Accounts Payable Bonds Payable Common Shares ($10 par value) Retained Earnings Total Liabilities & Equities $ 100,000 600,000 400,000 500,000 $1,600,000