On January 1, 2016, Telconnect acquires 70 percent of Bandmor for $490,000 cash. The remaining 30 percent

Question:

On January 1, 2016, Telconnect acquires 70 percent of Bandmor for $490,000 cash. The remaining 30 percent of Bandmor's shares continued to trade at a total value of $210,000. The new subsidiary reported of $300,000 on that date, with retained earnings of $180,000. A patent was undervalued in the company's financial records by $30,000. This patent had a five-year remaining life. of $190,000 was recognized and allocated proportionately to the controlling and non-controlling interests. Bandmor earns net income and declares cash dividends as follows:
Year __________ Net Income ___________ Dividends
2016 ................. $ 75,000 ..................... $39,000
2017 ................... 96,000 ....................... 44,000
2018 ................. 110,000 ....................... 60,000
On December 31, 2018, Telconnect owes $22,000 to Bandmor.
a. If Telconnect has applied the equity method, what consolidation entries are needed as of December 31, 2018?
b. If Telconnect has applied the initial value method, what Entry *C is needed for a 2018 consolidation?
c. If Telconnect has applied the partial equity method, what Entry *C is needed for a 2018 consolidation?
d. What non-controlling interest balances will appear in consolidated for 2018?
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