Large Company purchased 95% of the common stock of Little Company on May 1, 2020, paying $515,000 in cash. December 31, 2020, trial balances for Large and Little were:

BALANCE SHEET	Large Company		Little Company
	December 31, 2020		December 31, 2020
Current Assets	352,600		179,200
Investment in Little	549,845
Property and Equipment	1,334,000		562,000
Total Assets	2,236,445		741,200
Account and Notes Payable	(270,240)		(124,000)
Dividend Payable			(60,000)
Common Stock ($ 10 par)	(1,000,000)		(200,000)
APIC	(364,000)		(90,000)
Treasury Stock at Cost, 500 shares			32,000
R/E 1/1/2020	(315,360)		(209,200)
Net Income	(286,845)		(150,000)
Dividend Declared	0		60,000
Total Liabilities + Equity	(2,236,445)		(741,200)

INCOME STATEMENT	Large Company		Little Company
	2020		2020
Sales Revenues	(1,940,000)		(976,000)
COGS	1,261,000		584,000
Other Expenses	484,000		242,000
Equity in Subsidiary Income	(91,845)
Net Income	(286,845)		(150,000)

Little Company declared a $60,000 cash dividend on December 20, 2020, payable on January 10, 2020, to stockholders of record on December 31, 2020. Large Company recognized the dividend on its declaration date. Any difference between book value and the value implied by the purchase price relates to subsidiary PPE with 5-year remaining useful life, included in “Property and Equipment.”

Revenues and expenses are distributed evenly through the year.

Required:

1. Calculate the balance of NCI at December 31, 2020. Provide detailed calculations. 
2. Complete a consolidated worksheet (in proper form) for Large Company and its subsidiary Little Company as of December 31, 2020. Prepare supporting amortization schedules. 

Answer rating: 100% (QA)

NCI 200000900003200020920015000060000 NCI 3192005 NCI 15960 ... View the full answer