QUESTION $2$:

Selected information from the separate and consolidated balance sheets and income statements of Pond, Inc. and its subsidiary, Swimming Co$.,$ as of December $31,$ Year $1,$ and for the year then ended is as follows:

$\backslash$table$[[,$Pond,Swimming,Consolidated$],[$Balance sheet accounts,,,$],[$Accounts receivable,$26,000,19,000,39,000],[$Inventory$,30,000,25,000,52,000],[$Investment in Swimming,$67,000,-,-],[$Goodwill$,-,-,30,000],[$Noncontrolling interest,$-,-,10,000],[$Stockholders$,$ equity,$154,000,50,000,154,000],[,,,],[$Income statement accounts,,,$],[$Revenues$,$$$200,000,$$$140,000,$$$308,000],[$Cost of goods sold,$150,000,110,000,231,000],[$Gross profit,$50,000,30,000,77,000],[$Equity in earnings of Swimming,$11,000,-,-],[$Net income,$36,000,20,000,40,000]]$

Additional information: During Year $1,$ Pond sold goods to Swimming at the same markup on cost that Pond uses for all sales. At December $31,$ Year $1,$ Swimming had not paid for all of these goods and still held $37\mathrm{.}5\%$ of them in inventory.

REQUIRED:

In Pond's consolidated balance sheet, what was the carrying amount of the inventory that Swimming purchased from Pond? SHOW YOUR WORK.Parrot Inc. owns $16,000$ of Seal Co$.\text{'}$s $20,000$ outstanding common shares. The carrying value of Seal's

equity is $$500,000.$ Seal subsequently issues an additional $5,000$ previously unissued shares for $$200,000$

to an outside party that is unrelated to either Parrot or Seal.

REQUIRED:

What is the total noncontrolling interest after the additional shares are issued? SHOW YOUR WORK.