Reference no: EM132650685

On January 1, 2013, Parent Company purchased 80% of the common stock of Subsidiary Company for $280,000. On this date, Subsidiary had total owners' equity of $250,000 (common stock $20,000; other paid-in capital, $80,000; and retained earnings, $150,000). Any excess of cost over book value is due to the under or overvaluation of certain assets and liabilities. Inventory, which was sold in the third quarter, is undervalued $5,000. Land is undervalued $20,000. Buildings and equipment have a fair value which exceeds book value by $30,000, and a 6-year expected life. Bonds payable are overvalued $10,000. The remaining excess, if any, is due to goodwill. Subsidiary had net income of $100,000 and paid $500 in dividends during 2013. Parent had net income of $50,000 and paid $1,000 in dividends during 2013. Assume that Parent uses equity method to record its investment.

Question (1) Provide all eliminations as of December 31, 2019.

Question (2) Calculate how much consolidated net income belongs to NCI