Reference no: EM132824073

PAR Inc. purchased 70% of SUBS Inc. on January 1, 2020 for $2,100,000. SUBS's common shares and retained earnings were worth $850,000 each on that date. SUBS uses the cost method internally to account for the investment.

The acquisition differential was allocated as follows:

Trademark $38,000 (which had not been previously recorded)
Inventory $10,000 (fair value in excess of book value)

• The balance was allocated to goodwill. The trademark had an estimated remaining useful life of 12 years from the date of acquisition.
• In 2020, PAR's net income was $300,000 and SUBS's net income was $72,000.
• During 2020, SUBS declared and paid $20,000 in dividends to shareholders on record.

Required:

Problem a) Calculate PAR's consolidated income for 2020.

Problem b) Calculate income attributable to PAR for 2020.

Problem c) Calculate income attributable to non-controlling interest for 2020.

Problem d) Calculate non-controlling interest as reflected in equity at December 31, 2020