Assignment

On January 1, 2015, Park Company purchased a 20% interest in Miller Company by cash. The purchase price of $196,800 reflected an assessment that all of Miller's accounts were fairly valued within the company's accounting records (i.e., book values are approximate to the fair values). Park appropriately applied the equity method to this investment.

On Sep. 30, 2015, Park acquired an additional 70% interest in Miller and provided the following fair value assessments of Miller's ownership components:

Cash transferred by Park for 70% interest $1,176,000
Fair value of Park's 20% previous ownership $280,000
Fair value of Noncontrolling interest's 10% $140,000
Total acquisition-date fair value $1,596,000

As of Sep 30, 2015, Miller's book value was 1,240,000. Park assessed a $160,000 value to an unrecorded customer contract recently negotiated by Miller. The customer contract is anticipated to have a remaining life of 4 years. Miller's other assets and liabilities were judged to have fair values equal to their book values. Any remaining excess fair value was attributed to goodwill. Park elects to continue applying the equity method to this investment for internal reporting purpose.

Miller reported net income of $80,000 for 2015 and paid annual cash dividends of $24,000 on Oct 15, 2015. Miller's income was assumed to be earned evenly throughout the year and no changes in Miller's stocks have occurred.

Required:

1: Prepare all journal entries by Park (parent company) on its internal accounting records (General Journal) for 2015 related to its investments in Miller company. Show calculations.

2: Calculate the balances for noncontrolling interest as of Dec 31, 2015. Show calculations.