Bowen Limited purchased 60% of Sloch Co. when Sloch's reported retained earnings were $330,000 and its share capital was $200,000. Bowen also owns 80% in Zeek Limited, which was purchased when Zeek reported retained earnings of $575,000 and had share capital of $270,000. For each acquisition, the purchase price was equal to the fair value of the identifiable net assets, which was the same as the carrying value of their carrying values.
An analysis of the changes in retained earnings of the three companies at December 31, 20X7, was: $$1,270,000‾685,000‾$1,050,000‾\begin{array} { | l | r | r | r | } \hline &{ \text { Bowen } } & { \text { Sloch } } &{ \text { Zeek } } \\\hline \begin{array} { l } \text { Retained earnings-January } \\1,20 \mathrm { X } 7\end{array} & \$ 1,020,000 & \$ 525,000 & \$ 875,000 \\\hline \text { Net income for the year } & 750,000 & 360,000 & 275,000 \\\hline \text { Dividends paid } & ( 500,000 ) & ( 200,000 ) & ( 100,000 ) \\\hline \begin{array} { l } \text { Retained earnings- } \\\text { December 31, 20X7 }\end{array} & \underline {\$ 1,270,000 }& \underline { 685,000 } &\underline { \$ 1,050,000} \\\hline\end{array}$ Sloch sells product to Bowen that is used in Bowen's production. Bowen will then sell part of its products to Zeek.
Intercompany profits included on sales from Sloch to Bowen were $25,000 included in January 1, 20X7, inventory, and $40,000 included in December 31, 20X7, inventory.
Intercompany profits included on sales from Bowen to Zeek were $31,000 included in January 1, 20X7, inventory, and $35,000 included in December 31, 20X7, inventory.
During 20X5, Bowen sold a building to Zeek for a gain of $300,000. The building had a remaining life of 25 years. During 20X7, Sloch sold a building to Bowen for a gain of $75,000. This building has a useful remaining life of 15 years. Full depreciation was recorded in the year of acquisition by each company and no depreciation was recorded in the year of sale.
Required:
Calculate the consolidated retained earnings and balance of the non-controlling interest at December 31, 20X7.

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Bowen Limited purchased 60% of Sloch Co. when Sloch's reported retained earnings were $330,000 and its share capital was $200,000. Bowen also owns 80% in Zeek Limited, which was purchased when Zeek reported retained earnings of $575,000 and had share capital of $270,000. For each acquisition, the purchase price was equal to the fair value of the identifiable net assets, which was the same as the carrying value of their carrying values.
An analysis of the changes in retained earnings of the three companies at December 31, 20X7, was:

$1,270,000‾685,000‾$1,050,000‾\begin{array} { | l | r | r | r | } \hline &{ \text { Bowen } } & { \text { Sloch } } &{ \text { Zeek } } \\\hline \begin{array} { l } \text { Retained earnings-January } \\1,20 \mathrm { X } 7\end{array} & \$ 1,020,000 & \$ 525,000 & \$ 875,000 \\\hline \text { Net income for the year } & 750,000 & 360,000 & 275,000 \\\hline \text { Dividends paid } & ( 500,000 ) & ( 200,000 ) & ( 100,000 ) \\\hline \begin{array} { l } \text { Retained earnings- } \\\text { December 31, 20X7 }\end{array} & \underline {\$ 1,270,000 }& \underline { 685,000 } &\underline { \$ 1,050,000} \\\hline\end{array}

Sloch sells product to Bowen that is used in Bowen's production. Bowen will then sell part of its products to Zeek.
Intercompany profits included on sales from Sloch to Bowen were $25,000 included in January 1, 20X7, inventory, and $40,000 included in December 31, 20X7, inventory.
Intercompany profits included on sales from Bowen to Zeek were $31,000 included in January 1, 20X7, inventory, and $35,000 included in December 31, 20X7, inventory.
During 20X5, Bowen sold a building to Zeek for a gain of $300,000. The building had a remaining life of 25 years. During 20X7, Sloch sold a building to Bowen for a gain of $75,000. This building has a useful remaining life of 15 years. Full depreciation was recorded in the year of acquisition by each company and no depreciation was recorded in the year of sale.
Required:
Calculate the consolidated retained earnings and balance of the non-controlling interest at December 31, 20X7.

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