date. On January 1, 2018, Sea-Breeze had the following assets and liabilities: Book Value Fair Value Current assets $ 150,000 $ 150,000 Land 200,000 200,000 Buildings (net) (6-year remaining life) 300,000 360,000 Equipment (net) (4-year remaining life) 300,0
Nascent, Inc., acquires 60 percent of Sea-Breeze Corporation for $414,000 cash on January 1, 2018. The remaining 40 percent of the Sea-Breeze shares traded near a total value of $276,000 both before and after the acquisition date. On January 1, 2018, Sea-Breeze had the following assets and liabilities:
| Book Value | Fair Value | ||||||
| Current assets | $ | 150,000 | $ | 150,000 | |||
| Land | 200,000 | 200,000 | |||||
| Buildings (net) (6-year remaining life) | 300,000 | 360,000 | |||||
| Equipment (net) (4-year remaining life) | 300,000 | 280,000 | |||||
| Patent (10-year remaining life) | 0 | 100,000 | |||||
| Liabilities | (400,000 | ) | (400,000 | ) | |||
The companies’ financial statements for the year ending December 31, 2021, follow:
| Nascent | Sea-Breeze | ||||||
| Revenues | $ | (600,000 | ) | $ | (300,000 | ) | |
| Operating expenses | 410,000 | 210,000 | |||||
| Investment income | (42,000 | ) | 0 | ||||
| Net income | $ | (232,000 | ) | $ | (90,000 | ) | |
| $ | (700,000 | ) | $ | (300,000 | ) | ||
| Net income | (232,000 | ) | (90,000 | ) | |||
| Dividends declared | 92,000 | 70,000 | |||||
| Retained earnings, 12/31/21 | $ | (840,000 | ) | $ | (320,000 | ) | |
| Current assets | $ | 330,000 | $ | 100,000 | |||
| Land | 220,000 | 200,000 | |||||
| Buildings (net) | 700,000 | 200,000 | |||||
| Equipment (net) | 400,000 | 500,000 | |||||
| Investment in Sea-Breeze | 414,000 | 0 | |||||
| Total assets | $ | 2,064,000 | $ | 1,000,000 | |||
| Liabilities | $ | (500,000 | ) | $ | (200,000 | ) | |
| Common stock | (724,000 | ) | (480,000 | ) | |||
| Retained earnings, 12/31/21 | (840,000 | ) | (320,000 | ) | |||
| Total liabilities and equities | $ | (2,064,000 | ) | $ | (1,000,000 | ) | |
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What is consolidated net income for 2021, and what amounts are attributable to the controlling and noncontrolling interests?
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Within consolidated statements at January 1, 2018, what balance is included for the subsidiary’s Buildings account?
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What is the consolidated Buildings reported balance as of December 31, 2021?
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