Question

The stockholder's equity of Pop Corporation and Son Corporation on Dec 31, 2015 are as follows:

Stockholder equity accounts Dec 31, 2015
		Pop	Son
Capital stock		1200000	500000
Retained earnings		500000	100000
Total		1700000	600000

On Jan 2, 2016 Pop Corp acquired an 80% interest in Son Corp for $500,000. The excess fair value was due to Son's undervalued equipment by $50,000 and unrecorded patents. The undervalued equipment has a 5yr remaining life and patents are amortized over 10 yrs. The income and dividends of Pop and Son are the following :

Income and dividends
	Pop		Son
	2016	2017	2016	2017
Net income	340,000	350,000	120,000	150,000
Dividends	240,000	250,000	80,000	90,000

1.) Determine consolidated net income for Pop Corporation and Subsidiary for 2016

This is my answer below, but according to the solution to the problem, this is incorrect. The solution shows 340,000 of Pop's income plus $20,500 of the NCI share of Son's income. Why is NCI share of income being added to Pop's income? My textbook shows NCI share being subtracted from net income to get the final consolidated net income. What am I not getting ?

Net income from Pop			340,000
Income from Son:
Net income		120,000
Less: Excess amortized
Depreciation of equipment	(10,000)
Amortization of patents	(7,500)	(17,500)
Adjusted net income		102,500
Interest acquired		80%
Add: Income from Son			82,000
Less: Intercompany dividend from Son			(64,000)
Consolidated Net income			358,000
Non controlling interest share	102,500 x .20=		20,500

Answer 1

Net income from pop					340,000.00
Income From son
net income				120,000.00
Less : Excess amortized
Depreciation Equipment			-10000
Amortization of pattern			-75000
Amortization of undervalation			-5000
pattern				-22500
Adusted total income				97500
interest Acquired				80%
Add= income from son					78000
Less : interco dividend from son					-64000
Less : interco income from son					-19500
Conslidated net income					334,500.00
Non controling interest share
(97500*20 %)				19500