Problem 3 On January 3, 2016, Perpetual Industries acquired 80% of Sawyer Corporations voting stock. Total goodwill of $1,000,000 was recognized at the date of acquisition, allocated $850,000 to the controlling interest and $150,000 to the noncontrolling interest. Sawyer's reported net assets and liabilities had a book value that approximated fair value at the date of acquisition, but it had previously unreported customer lists (5years life SL) valued at $500,000. It is now December 31, 2019, for years after the date of acquisition. Additional information is as follows: • • • 1. For 2019, Sawyer reported income $500,000 Goodwill impairment for 2019 is $200,000 Sawyer sells merchandise to Perpetual at a markup of 20% over cost. Perpetual's beginning inventory for 2019 includes $300,000 in merchandise purchased from Sawyer. Perpetual's ending inventory for 2019 includes $600,000 in merchandise purchased from Sawyer. Total sales from Sawyer to Perpetual were $2,500,000. Calculate 2019 equity in net income of Sawyer, reported on Perpetual's separate books, and the 2019 noncontrolling interest in Net Income of Sawyer reported on Perpetual's| consolidated Financial Statements. Use the Schedule below for your answer: Total Equity in Noncontrolling Interest in Net Income Net Income 2. Sawyer's reported net income Prepare the working paper entries made in consolidation on December 31, 2019, related to the intercompany transactions.