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Paisley Incorporated On January 1, 2011, Paisley Incorporated paid $300,000 for 60% of Smarnia Company's...

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Accounting

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Paisley Incorporated On January 1, 2011, Paisley Incorporated paid $300,000 for 60% of Smarnia Company's outstanding capital stock. Smarnia reported common stock onthat date of $250,000 and retained earnings of $100,000. Plant assets, which had a five-year remaininglife, were undervalued in Smamia's financial records by S10,000 Smaria alsohad a patent that was not on the books, but had a market value of $60,000. Thepatent has a remaining useful life of 10 years. Any remaining fair value/bookvalue differential is allocated to goodwill. Smamia's net income and dividendspaid the first three years that Paisley owned them are shown below. Net Dividends Income Paid 2011 80,000 30,000 2012 90.000 10,000 2013 60.000 20.000 They Use Acquisition Methods & Implied Goodwill & Equity Mehtod For Investment Account. Base on this case please answer the following Questions 1. Calculate the Equity income for the noncontrolling interest for Year 2011 (2 points)

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