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Smith, Inc., has the following stockholders' equity accounts as of January 1, 2021: Preferred stock-$120 par, nonvoting and nonparticipating, 5% cumulative dividend Common stock-$20 par value Retained earnings $ 2,220,000 4,220,000 10,220,000 Haried Company purchases all of Smith's common stock on January 1, 2021, for $14,510,000. The preferred stock remains in the hands of outside parties. Any excess acquisition-date fair value will be assigned to franchise contracts with a 50-year remaining life. During 2021, Smith reports earning $670,000 in net income and declares $580,000 in cash dividends. Haried applies the equity method to this investment. a. What is the noncontrolling interest's share of consolidated net income for this period? b. What is the balance in the Investment in Smith account as of December 31, 2021? c. What consolidation entries are needed for 2021? Complete this question by entering your answers in the tabs below. Req A and B Req C a. What is the noncontrolling interest's share of consolidated net income for this period? b. What is the balance in the Investment in Smith account as of December 31, 2021? Amount a. b. Net income noncontrolling interest's share Investment in Smith account $ 111,000 < Req A and B Req C > view transaction list Consolidation Worksheet Entries < 1 2 3 4 Prepare a combined entry for Consolidation Entries S and A. Note: Enter debits before credits. Transaction 1 Accounts Debit Credit Record entry Clear entry view consolidation entries < Req A and B Req C > view transaction list Consolidation Worksheet Entries 1 2 3 4 Prepare Consolidation Entry I for the income accrual. Note: Enter debits before credits. Transaction 2 Accounts Debit Credit Record entry Clear entry view consolidation entries < Req A and B Req C > > view transaction list Consolidation Worksheet Entries 12 3 4 Prepare Consolidation Entry D for the dividends declared. Note: Enter debits before credits. Transaction 3 Accounts Debit Credit Record entry Clear entry view consolidation entries < Req A and B Req C > > view transaction list Consolidation Worksheet Entries 1 2 3 Prepare Consolidation Entry E to record amortization. Note: Enter debits before credits. Transaction 4 Accounts Debit Credit Record entry Clear entry view consolidation entries < Req A and B Req C > >

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