Mighty Company purchased a 60 percent interest in Lowly Company on January 1, 2020, for $510,900 in cash. Lowly's book v

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Mighty Company purchased a 60 percent interest in Lowly Companyon January 1, 2020, for $510,900 in cash. Lowly's book value atthat date was reported as $692,500, and the fair value of thenoncontrolling interest was assessed at $340,600. Any excessacquisition-date fair value over Lowly's book value is assigned totrademarks to be amortized over 20 years. Subsequently, on January1, 2021, Lowly acquired a 20 percent interest in Mighty. The priceof $344,000 was equivalent to 20 percent of Mighty's book and fairvalue.
Neither company has paid dividends since these acquisitionsoccurred. On January 1, 2021, Lowly's book value was $984,500, afigure that rises to $1,048,500 (common stock of $300,000 andretained earnings of $748,500) by year-end. Mighty's book value was$1.72 million at the beginning of 2021 and $1.82 million (commonstock of $1 million and retained earnings of $820,000) at December31, 2021. No intra-entity transactions have occurred, and noadditional stock has been sold. Each company applies the initialvalue method in accounting for the individual investments.
Prepare worksheet entries which are required to consolidatethese two companies for 2021.
What is the net income attributable to the noncontrollinginterest for this year?