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On June 30th, 2018 Parker, Inc. acquires 80% of Sawyer Company for $800,000.  The remaining 20% of...

  1. On June 30th, 2018 Parker, Inc. acquires 80% of Sawyer Company for $800,000.  The remaining 20% of Sawyer’s outstanding shares continue to trade at a collective value of $200,000.  On the acquisition date, Sawyer has the following accounts:

                  

                                                                  Book Value                Fair Value

               Current Assets                           $210,000                     $210,000

               Land                                           170,000                      250,000

               Buildings                                   300,000                      450,000

               Patent                                                  -0-                      120,000

               Liabilities                                   (280,000)                    (280,000)

The buildings have a 10-year life and the patent has a 6-year life.  Parker reported Net Income for 2018 of $530,000 (excluding any income from Sawyer), and Sawyer separately reported Net Income of $175,000. Sawyer paid dividends for the year of $60,000.  You can assume that Sawyer’s Net Income and Dividends were earned and paid ratably throughout the year.  

a. Balance of the Non-controlling Interest at the end of the year

b. Balance of the Patent account at the end of the year.

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