P7-35 Intercompany Sale of Land and Depreclable Asset LO 7-3, 7-6 Putt Corporation acquired 70 percent of Slice Company's voting common stock on January 1, 20X3, for $158,900. Slice reported common stock outstanding of $100,000 and retained earnings of $85,000. The fair value of the noncontrolling interest was $68,100 at the date of acquisition. Buildings and equipment held by Slice had a fair value $25,000 higher than book value. The remainder of the differential was assigned to a copyright heid by Slice. Buildings and equipment had a 10-year remaining life and the copyright had a 5- year life at the date of acquisition. Trial balances for Putt and Slice on December 31, 20X5, are as follows: Putt Corporation Credit Slice Company Debit 15,850 65, 000 30, e00 150, e00 80, e00 315,000 Debit $ 58, 000 70, e00 10, 000 180, e00 60, e00 240, 000 15, e00 Credit Cash Accounts Receivable Interest & Other Receivables Inventory Land Buildings & Equipment Bond Discount Investment in Slice Company Cost of Goods Sold Depreciation Expense Interest Expense Other Expense Dividends Declared Accumulated Depreciation-Buildings and Equipment Accounts Payable Other Payables Bonds Payable Common Stock Additional Paid-in Capital Retained Earnings Sales Other Income Gain on Sale of Equipment Income from slice Company 157,630 375, e00 25, e0e 24, e00 28,e00 30, e0e 110, e0e 10, e00 33, e00 17, e0e 5, e00 $ 120, e00 61, 000 30, 000 250, 000 150, e00 30, e00 165, 240 450, e00 28, 250 $ 60, 000 28, e0e 20, 000 300, e0e 100, e00 100, e00 190, 400 9, 600 10,990 $1,295, 480 Total $1,295, 480 $808, 000 $808, e00 Putt sold land it had purchased for $21,000 to Slice on September 20, 20X4, for $32.000. Slice plans to use the land for future plant expansion. On January 1, 20X5, Slice sold equipment to Putt for $91,600. Slice purchased the equipment on January 1, 20X3, for $100,000 and depreciated it on a 10-year basis, including an estimated residuai value of $10,000. The residual value and estimated economic life of the equipment remained unchanged as a result of the transfer, and both companies use straight-line depreciation. Assume Putt uses the fuly adjusted equity method. Requlred: a. Compute the amount of income assigned to the noncontrolling interest in the consolidated income statement for 20X5. Income to noncontrolling interest