1. On January 1, 2023, the Big Company acquired 80% of the outstanding shares of Little Company for $800,000 in cash. The price paid was proportionate to Littles total fair share, although at the acquisition date, Little Company had a total book value of $850,000 (Common Stock - $400,000 and Retained Earnings - $450,000). All assets acquired and liabilities assumes have fair values equal to book values except for a patent (five-year remaining life) that was undervalued on Littles accounting records by $120,000. Any excess fair value is attributable to goodwill. On the very next day, January 2, 2023, the Big and Little Company engaged in the following transactions: a. Little Company sold inventory to the Big Company. The sales price was $240,000 and the cost was $180,000. At December 31, 2023, 20% of that inventory has not been sold or used up by the Big Company. b. The Big Company sold some used equipment to the Small Company for $100,000. The cost of the equipment for the Big Company was $160,000 and depreciation in the amount of $80,000 was recorded prior to the date of sale. The equipment has a 5-year life remaining. c. The Big Company sold some land to the Small Company. That land was on the books of the Big Company at $300,000 and it was sold for $350,000. d. Finally, the Big Company purchased some of the bonds payable that Small Company had outstanding for several years. The bonds had a face value of $200,000, a stated interest rate of 6%. The bonds were carried at a value of $160,000 and had an effective interest rate of 9%. Big Company paid $170,000 for this bond investment, to yield an effective interest rate of 8%. Note: Do not use this loss/gain in computing the equity income from Small Company, as this gain/loss is assumed to be on the books of the Big Company. During 2023, the Small Company reported income of $250,000 and paid dividends totaling $80,000. Required: Prepare the required worksheet consolidation entries for the consolidation of the Big and Little Companies as of December 31, 2023. You do not have to prepare a formal worksheet, but merely prepare all of the entries required for that worksheet preparation. (42 test points) 2. Prepare the required journal entries for the 2024 consolidation of the Big and Little Company for these consolidation entries: *G, *TA, *ED, and *TL. (8 points)