On January 1, 20X0, Hoola Company (Hoola) purchased 60,000 shares of Soop Ltd. (Soop) for $558,000. On January 1, 20X3, Hoola purchased another 30,000 shares of Soop for $400,000. During the entire period, Soop had a total of 100,000 shares outstanding. Hoola accounts for its investment in Soop using the equity method. The following information was extracted from the financial records of Soop:

All net identifiable assets had a fair value equal to carrying value on the date of acquisition except for the patent. The annual tests for goodwill impairment have indicated no impairment of goodwill since the dates of acquisition. Hoola and Soop do not have any goodwill recorded on their separate entity statements of financial position. Hoola does not have any patents on its own SFP.

There have not been any intercompany transactions between Hoola and Soop.

Required

a. Calculate the balances of the following accounts on the consolidated SFP at December 31, 20X4, under the entity method:

i. patents;

ii. goodwill; and

iii. NCI.

b. Calculate the balance in the investment in Soop account at December 31, 20X4.

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December 31, 20X4 $ 60,000 January 1, January 1, 20X0 $110,000 20X3 Net carrying value of patent Fair value of patent Remaining useful life of patent in years Common shares Retained earnings $ 80,000 $165,000 11 $100,000 $400,000 $240,000 $240,000 $100,000 $550,000 $100,000 $710,000