On January 1, 2017, Bretz, Inc., acquired 60 percent of the outstanding shares of Keane Company for $573,000 in cash. The price paid was proportionate to Keane's total fair value although at the date of acquisition, Keane had a total book value of $810,000. All assets acquired and liabilities assumed had fair values equal to book values except for a copyright (six-year remaining life) that was undervalued in Keane's accounting records by $120,000. During 2017, Keane reported net income of $150,000 and declared cash dividends of $80,000. On January 1, 2018, Bretz bought an additional 30 percent interest in Keane for $300,000.

The following financial information is for these two companies for 2018. Keane issued no additional capital stock during either 2017 or 2018. Also, at year-end, there were no intra-entity receivables or payables.

a. Show the journal entry Bretz made to record its January 1, 2018, acquisition of an additional 30 percent of Keane Company shares. 

b. Prepare a schedule showing how Bretz determined the Investment in Keane Company balance as of December 31, 2018. 

c. Prepare a consolidated worksheet for Bretz, Inc., and Keane Company for December 31, 2018.

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Bretz, Inc. Keane Company S (402.000) (300,000) Operating expenses Equity in Keane earnings 120,000 .000 (180.000 $ (797,000) (500,000) 60,000 200,000 (144 Net income $ (346 Net income (above) (346,000) 143,000 (180,000) $(1.000000) (620,000) 5 Current assets Investment in Keane Company Trademarks Copyrights. Equipment (net) $ 224,000$90,000 600,000 300,000 110,000 1.914,500 1,200,000 994,500 106,000 210,000 380,000 Total assets Bretz, Inc.Keane Company Liabilities Common stock Additional paid-in capital Additional paid-in capital-step acquisition Retained earnings, 12/31 $(453,000) (200,000) (300,000) (80,000) (400,000) (60,000) (1,500) (1.000,000 (620,000) 1.914.500 1.200,000 Total liabilities and equities