PROBLEMS Problem 6-1 (LO I Cash flow, year subsequent to purchase. Marion Company is an 80% owned subsidiary of Lange Company. The interest in Marion is purchased on January 1, 2015, for $680,000 cash. The fair value of the NCI was $170,000. At that date, Marion has stockholders' equity of S650,000. The excess price is attributed to equipment with a 5-year life undervalued by S50,000 and to goodwill. The following comparative consolidated trial balances apply to Lange Company and its subsidiary, Marion: December 31, December 31, 2015 2016 24,500 Cash 6,000 120,000 160,000 inventory 200,000 Accounts Receivable 300,000 Property, Plant, and Equipment 3,450,000 3,030,000 Accumulated Depreciation (1,086,000) (1,292,000 Investment in Charles Corporation (30%.......... 244,500 150,000 150,000 (200,000) Accounts payable (117,000) Bonds Payable. (100,000 (450,000 Noncontrolling Interest (167,000) 79,000 Controlling Interest: (1,000,000 Common Stock (par) (1,000,000) Additional PaidIn Capital in Excess of Par (650,000) (650,000) Retained Earnings 396,000) 58,000 Totals The 2016 information shown on page 362 is available for the Lange and Marion companies