Advanced Accounting: P4-20 On January 1, 2011, Harrison, Inc. acquired 90 percent

Advanced Accounting
P4-20 Compute consolidated income and noncontrolling interests
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 divident payments of $30,000 each year. Apart from its investments 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 noncontroling interest balance as of December 31, 2012?
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