1. Choco Co. acquired 60% of Allie Co. (Allie has total of 100,000 shares outstanding and Choco acquired 60,000 shares) for $540,000 ($9/share) on December 31, 2018. The market value of Allies stock was $9/share. Choco uses equity method to report its investment in Allie.

12/31/2018	Choco Co.	Allie Co.
	BV	BV	FV
Current assets	$868,000	$238,000	$238,000
Equipment [4 years]	364,000	280,000	360,000
Buildings [12 years]	574,000	210,000	270,000
Liabilities	$(546,000)	$(168,000)	$(168,000)
Common stock	(300,000)	(150,000)
Additional paid in capital	(460,000)	(350,000)
Retained earnings[12/31/18]	(500,000)	(60,000)
*note: numbers in this table in () refer to credit balance.

During 2019, Allie earned net income of $180,000 and paid dividends of $22,000.

1. Calculate goodwill and allocated calculated goodwill between controlling and noncontrolling interest (NCI) on 12/31/2018 (acquisition date)
2. Calculate annual excess amortization of equipment and building
3. Calculate investment in Allie balance on 12/31/2019
4. Calculate equity in Allies income balance on 12/31/2019. Prepare consolidation entry S for consolidated financial statement ending 12/31/2019.

5. Prepare consolidation entry S for consolidated financial statement ending 12/31/2019.

Accounts	Dr.	Cr.

6. Prepare consolidation entry A for consolidated financial statement ending 12/31/2019.

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7. Prepare consolidation entry I for consolidated financial statement ending 12/31/2019.

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8. Prepare consolidation entry D for consolidated financial statement ending 12/31/2019.

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9. Prepare consolidation entry E for consolidated financial statement ending 12/31/2019.

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10. Chocos net income only from its own operation (excluding 60% of Allies ownership as Equity in Allies income) in 2019 was $580,000. What is consolidated net income for 2019 attributable to Chocos controlling interest (i.e., NI:Choco in consolidated income statement)?

11. What is the noncontrolling interest (NCI)'s share of the Allie's net income for the year ended 12/31/2019 (i.e., i.e., NI:NCI in consolidated income statement)?

12. What is the ending balance of the noncontrolling interest (NCI) in the Allie at 12/31/2019 (i.e., NCI in Cake 12/31)?