Apex Ltd acquired 10 percent of Santa Corporation on January 1, 2017, for 186,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2018, Apex purchased an additional 30 percent of Santa for 661,000 which resulted in significant influence over Santa. On that date, the fair value of Santa’s common stock was 2,030,000 in total. Santa’s January 1, 2018 book value equaled 1,880,000, although land was undervalued by 135,000. Any additional excess fair value over Santa’s book value was attributable to a trademark with an 8-year remaining life. During 2018, Santa’s reported income of 345,000 and declared and paid dividends of 100,000. Prepare the 2018 journal entries for Apex related to its investment in Santa.

Parent acquires 80% of Sub for $170,000 on December 31, 2014. In 2015 Sub has net income of $140,000 and paid dividends of $70.000. Amortization of excess fair value over book value for the year was $43,750. What is the Investment in Sub account balance as of December 31, 2015.

On January 1, 2017, Doone Corporation acquired 60 percent of the outstanding voting stock of Rockne Company for $312,000 consideration. At the acquisition date, the fair value of the 40 percent noncontrolling interest was $208,000 and Rockne's assets and liabilities had a collective net fair value of $520,000. Doone uses the equity method in its internal records to account for its investment in Rockne. Rockne reports net income of $150,000 in 2018. Since being acquired, Rockne has regularly supplied inventory to Doone at 25 percent more than cost. Sales to Doone amounted to $210,000 in 2017 and $310,000 in 2018. Approximately 35 percent of the inventory purchased during any one year is not used until the following year. a. What is the noncontrolling interest's share of Rockne's 2018 income? b. Prepare Doone's 2018 consolidation entries required by the intra-entity inventory transfers. Complete this question by entering your answers in the tabs below. Required A Required B What is the…