2. P Company purchased 80% of Prairie Co for $696,000 cash on 1/1/2019. Balance sheets for P Company and S Company immediately prior to the combination were as follows: P Co S Co BV BV FV Current Assets Land Building and Equipment (net) Total $1,314,000 $192,000 $192,000 540,000 308,000 300,000] 1,185,000 100,000 100,000 3.039,000 600,000 592,000 Liabilities Common Stock, $20 par value Other Contributed Capital Retained Earnings Total $900,000 $150,000 150,000 1,650,000 240,000 218,000 60,000 271,000 150,000 $3,039,000 600,000 a. Prepare computation and allocation of difference between implied and book values. b. Provide eliminating entry on 1/1/2019 to create consolidated balance sheet. c. Prepare consolidated balance sheet on 1/1/2019. C. YEAR Sco 2020 2021 2022 Net Income $40,000-$20,000-$20,000 Dividend $10,000 $4,000 $3,000 d. Assuming the P company uses cost method, provide eliminating entries for 2020. e. Assuming the P company uses cost method, provide eliminating entries for 2021. f. Assuming the P company uses cost method, provide eliminating entries for 2022. 3. P Company purchased 75% of Prairie Co for $696,000 cash on 1/1/2019. Balance sheets for P Company and S Company immediately prior to the combination were as follows: P Co S Co BV BV FV 62,000 $62,000 200,000 30,000 25,000 540,000 308,000 300,000 Current Assets except Inventory $1,114,000 Inventory Land" Building and Equipment (net) 1,185,000 200,000 250,000 Total 3,039,000 600,000 637,000 Liabilities $900,000 $150,000 150,000 Common Stock, $20 par value 1,650,000 240,000 Other Contributed Capital Retained Earnings 218,000 60,000 271,000 150,000 Total $3,039,000 600,000 3. P Company purchased 75% of Prairie Co for $696,000 cash on 1/1/2019. Balance sheets for P Company and S Company immediately prior to the combination were as follows: P Co S Co BV BV FV Current Assets except Inventory $1,114,000 Inventory Land Building and Equipment (net) ** Total Liabilities Common Stock, $20 par value 62,000 $62,000 200,000 30,000 25,000 540,000 308,000 300,000 1,185,000 200,000 250,000 3,039,000 600,000 637,000 $900,000 $150,000 150,000 1,650,000 240,000 Other Contributed Capital Retained Earnings Total 218,000 60,000 271,000 150,000 $3,039,000 600,000 P company uses FIFO. ** P company depreciate the S co's building and equipment using 2 years useful life and zero salvage value. YEAR 2020 2021 2022 Net income (Sco) $40,000-$20,000-$20,000 Dividend (Sco) YEAR $10,000 $4,000 $3,000 2020 2021 2022 Goodwill $575,000 $400,000 $390,000 YEAR P co (on P's book) 2020 2021 2022 Net income $300,000 $400,000 $450,000 Dividend $100,000 $12,000 $15,000 d. Assuming P co uses partial equity method, determine consolidated net income for 2020, 2021 and 2022. Assuming P co uses partial equity method, determine income available to NCI for 2020, 2021 and 2022. Assuming P co uses partial equity method, prepare eliminating entry for 2021 and 2022. g. Assuming P co uses complete equity method, determine consolidated net income for 2020, 2021 and 2022. h. Assuming P co uses complete equity method, determine income available to NCI for 2020, 2021 and 2022. Assuming P co uses complete equity method, prepare eliminating entry for 2020