Note: Problems 1 through 37 assume the use of the acquisition method.Problems 38 through 40 assume the use of the purchase method. On January 1, 2011, Harrison, Inc., acquired 90 percent

Note: Problems 1 through 37 assume the use of the acquisition method.Problems 38 through 40 assume the use of the purchase method.
On January 1, 2011, Harrison, Inc., acquired 90 percent of Starr Company in exchange for $1,125,000 fair-value consideration.The total fair value of Starr Company was assessed at $1,200,000.Harrison computed annual excess fair-value amortization of $8,000 based on the difference between Starr’s total fair value and its underlying net asset fair value.The subsidiary reported earnings of $70,000 in 2011 and $90,000 in 2012 with dividend payments of $30,000 each year.Apart from its investment in Starr, Harrison had income of $220,000 in 2011 and $260,000 in 2012.
a.What is the consolidated net income in each of these two years
b.What is the ending noncontrolling interest balance as of December 31, 2012

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