Subject: Nascent, Inc., acquires 60 percent of Sea-Breeze Corporation for $414,000 cash on January 1, 2018. The remaining 40 percent of theSea-Breeze shares traded near a total value of $276,000 both before and after the acquisition date. On January 1, 2018, Sea-Breezehad the following assets and liabilities:Current assetsLandBuildings (net) (6-year remaining life)Equipment (net) (4-year remaining life)Patent (10-year remaining life)LiabilitiesRevenuesOperating expensesInvestment incomeNet incomeRetained earnings, 1/1/21Net incomeDividends declaredRetained earnings, 12/31/21The companies' financial statements for the year ending December 31, 2021, follow:Current assetsLandBuildings (net)Equipment (net)Investment in Sea-BreezeTotal assetsLiabilitiesCommon stockRetained earnings, 12/31/21Total liabilities and equities$Annual excess amortizationf.g.$$$$Book Value$ 150,000200,000300,000300,000(400,000)330,000220,000700,000400,000414,000$ 2,064,000$b.c. Investment incomed. Parent's portion of consolidated retained earningse. Consolidated net Income.NascentSea-Breeze(600,000) $ (300,000)210,000410,000(42,000)(232,000)(500,000)(724,000)(840,000)$(2,064,000)Net income attributable to noncontrolling interestNet income attributable to Nascent, Inc.0(90,000)(300,000)(700,000)(232,000)(90,000)70,00092,000(840,000) $ (320,000)$Fair Value$ 150,000200,000360,000280,000100,000(400,000)$Subsidiary's building balance included in consolidated buildingsConsolidated balance0b. What is the annual excess amortization initially recognized in connection with this acquisition?c. If the parent had applied the equity method, what investment income would the parent have recorded in 2021?d. What amount should the parent report as retained earnings in its January 1, 2021, consolidated balance sheet?e. What is consolidated net income for 2021, and what amounts are attributable to the controlling and noncontrolling interests?f. Within consolidated statements at January 1, 2018, what balance is included for the subsidiary's Buildings account?g. What is the consolidated Buildings reported balance as of December 31, 2021?100,000200,000200,000500,0000$ 1,000,000$ (200,000)(480,000)(320,000)$(1,000,000)

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Amortization plays a crucial role in accurately reflecting the consumption or reduction in value of…

Nascent, Inc., acquires 60 percent of Sea-Breeze Corporation for $414,000 cash c Sea-Breeze shares traded near a total value of $276,000 both before and after the had the following assets and liabilities: Curront accoto Book Value Ś 150.000 Fair Value $ 150 000