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What is the consolidated net income in each of two years

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Question - On January 1, 2017, Harrison, Inc., acquired 90 percent of Starr Company in exchange for $1,125,000 fair-value consideration. The total fair value of Starr Company was assessed at $1,200,000. Harrison computed annual excess fair-value amortization of $8,000 based on the difference between Starr's total fair value and its underlying book value. The subsidiary reported net income of $70,000 in 2017 and $90,000 in 2018 with dividend declarations of $30,000 each year. Apart from its investment in Starr, Harrison had net income of $220,000 in 2017 and $260,000 in 2018.

Required -

(a) What is the consolidated net income in each of these two years?

(b) What is the balance of the noncontrolling interest in Starr at December 31, 2018?

Reference no: EM132489243

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