Question #$2$

Ocean House Ltd paid $$4,500,000$ cash to acquire $90$ percent of Hill View Ltd$.\text{'}$s voting stock on January $1,2014.$ Hill View's total stockholders' equity at the time was $$6,000,000.$ The difference between the book values and the fair values of Hill View's assets and liabilities at January $1,2014,$ is presented below:

$-$Inventory $($sold in the current year$)$ was undervalued by $$300,000.$

$-$Land was overvalued by $$550,000.$

$-$Equipment $($remaining life of $4$ years$)$ was undervalued by $$450,000.$

$-$Building $($remaining life of $5$ years$)$ was overvalued by $$750,000$

$-$Notes receivable $($due in $4$ years$)$ was undervalued by $$200,000.$

Hill View Ltd$.$ declared dividends of $$200,000$ each in March and June $2014.$ Its net income for the year was $$1,000,000.$

Required:

$1.$ Calculate the goodwill that should be reported in the consolidated balance sheet.

$2.$ Calculate income from Hill View Ltd$.$ for $2014.$

$3.$ Calculate the balance of the Investment in Hill View Ltd$.$ account at December $31,2014.$

$4.$ Calculate noncontrolling interest balance at December $31,2014.$