B)Entries Required

1) Prepare Entry S and A to eliminate the subsidiary stockholders' equity, record excess fair values, and to record the outside ownership of the subsidiary's preferred stock at fair value.

2) Prepare Entry I to eliminate the equity accrual made in connection with common stock along with the excess amortization recorded by the parent.

3) Prepare Entry D to remove the intra-entity dividend declarations made on common stock.

4) Prepare Entry E to recognize the amortization of franchises for the current year.

Smith, Inc., has the following stockholders' equity accounts as of January 1, 2018 Preferred stock-$100 par, nonvoting and nonparticipating, 6% cumulative dividend Common stock-$20 par value Retained earnings $ 2,250,000 4,250,000 10,250,000 Haried Company purchases all of Smith's common stock on January 1, 2018, for $14,550,000. The preferred stock remains in the hands of outside parties. Any excess acquisition-date fair value will be assigned to franchise contracts with a 40-year remaining life. During 2018, Smith reports earning $700,000 in net income and declares $610,000 in cash dividends. Haried applies the equity method to this investment. a. What is the noncontrolling interest's share of consolidated net income for this period? b. What is the balance in the Investment in Smith account as of December 31, 2018? c. What consolidation entries are needed for 2018? Complete this question by entering your answers in the tabs below Req A and B Req C a. What is the noncontrolling interest's share of consolidated net income for this period? b. What is the balance in the Investment in Smith account as of December 31, 2018? a. Net income noncontrolling interests share b. Investment in Smith account Smith, Inc., has the following stockholders' equity accounts as of January 1, 2018 Preferred stock-$100 par, nonvoting and nonparticipating, 6% cumulative dividend Common stock-$20 par value Retained earnings $ 2,250,000 4,250,000 10,250,000 Haried Company purchases all of Smith's common stock on January 1, 2018, for $14,550,000. The preferred stock remains in the hands of outside parties. Any excess acquisition-date fair value will be assigned to franchise contracts with a 40-year remaining life. During 2018, Smith reports earning $700,000 in net income and declares $610,000 in cash dividends. Haried applies the equity method to this investment. a. What is the noncontrolling interest's share of consolidated net income for this period? b. What is the balance in the Investment in Smith account as of December 31, 2018? c. What consolidation entries are needed for 2018? Complete this question by entering your answers in the tabs below Req A and B Req C a. What is the noncontrolling interest's share of consolidated net income for this period? b. What is the balance in the Investment in Smith account as of December 31, 2018? a. Net income noncontrolling interests share b. Investment in Smith account