1- Petra Corporation paid $500,000 for 80% of the outstanding voting common stock of Sizable Corporation on January 2, 2022 when the book value of Sizable's net assets was $460,000. The fair values of Sizable's identifiable net assets were equal to their book values except as indicated below. Book Value Fair Value Inventories (sold in 2022) $80,000 $112,000 Buildings-net (15-year life) 200,000 170,000 Note Payable (paid in 2022) 20,000 21,250 Sizable reported net income of $75,000 during 2022; dividends of $35,000 were declared and paid during the year. Required: (10 Marks) 1. Prepare a schedule to allocate the fair value/book value differential to the specific identifiable 2. 3. assets and liabilities. Determine Petra's income from Sizable for 2022. Determine the correct balance in the Investment in Sizable account as of December 31, 2022. 2- On December 31, 2021, Paladium International purchased 70% of the outstanding common stock of Sennex Chemical. Paladium paid $140,000 for the shares and determined that the fair value of all recorded Sennex assets and liabilities approximated their book values, with the exception of a customer list that was not recorded and had a fair value of $10,000, and an expected remaining useful life of 5 years. At the time of purchase, Sennex had stockholders' equity consisting of capital stock amounting to $20,000 and retained earnings amounting to $80,000. Any remaining excess fair value was attributed to goodwill. The separate financial statements at December 31, 2022 appear in the first two columns of the consolidation workpapers shown below. (10 Marks) Required: Complete the consolidation working papers for Paladium and Sennex for the year 2022. Required: Complete the consolidation working papers for Paladium and Sennex for the year 2022. Paladium Sennex Eliminations Consolidated INCOME STATEMENT 331,900 48,000 Sales Income of Sennex 9,100 Cost of Sales (148,000) (25,000 Other Expenses (72.000)8,000) Noncontrolling Interest Share Net income 121,000 15,000 Retained Earnings 846,000 80,000 Add:Net income 121,000 15,000 Less: Dividends (9,000) (4,000) Retained Earnings 958,000 91,000 12/31 BALANCE SHEET 135,000 64,000 Cash Accounts Receivable-net 227,000 160,000 Inventories 316,000 86,000 Land 80,000 40,000 Equipment and 469,000 230,000 Buildings-net 146,300 Investment in Sennex Customer List Goodwill TOTAL ASSETS 1.373,300 580,000 LIAB & EQUITY Accounts payable 305,300 469,000 Capital 110,000 20,000 Stock Retained 958,000 91,000 Earnings 1/1 Noncontrol. Interest 12/31 Noncontrol. Int. TOTAL LIAB & EQUITY 1.373,300 580,000 Debit Credi