2. Prepare Entry *C1 to convert to the equity method for Delta's acquisition.

3. Prepare Entry *C2 to convert to the equity method for Omega's acquisition.

4. Prepare entry S1 to eliminate stockholders' equity accounts of Omega.

5. Prepare entry S2 to eliminate stockholders' equity accounts of Delta.

6. Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for 2021.

7. Prepare Entry I1 to eliminate the intra-entity income accrual found on Alpha's records.

8. Prepare Entry I2 to eliminate the intra-entity income accrual found on Delta's records.

9. Prepare Entry D1 to eliminate the intra entity dividends for Delta.

10. Prepare Entry D2 to eliminate the intra entity dividends for Omega.

11. Prepare Entry E to recognize the current year amortization.

12. Prepare Entry TI to eliminate the intra-entity inventory transfer.

13. Prepare Entry G to defer the ending intra-entity gross profit on the intra-entity transfers.

On January 1, 2019, Alpha acquired 80 percent of Delta. Of Delta's total business fair value, $131,000 was allocated to copyrights with a 20-year remaining life. Subsequently, on January 1, 2020, Delta obtained 70 percent of Omega's outstanding voting shares. In this second acquisition, $151,800 of Omega's total business fair value was assigned to copyrights that had a remaining life of 12 years. Delta's book value was $520,000 on January 1, 2019, and Omega reported a book value of $162,000 on January 1, 2020. Delta has made numerous inventory transfers to Alpha since the business combination was formed. Intra-entity gross profits of $15,900 were present in Alpha's inventory as of January 1, 2021. During the year, $252,000 in additional intra-entity sales were made with $27,720 in Intra-entity gross profits in inventory remaining at the end of the period. Both Alpha and Delta utilized the partial equity method to account for their investment balances. Following are the individual financial statements for the companies for 2021 with consolidated totals. $ Alpha Company $ (970,200) 542,000 320,000 (212,800) $ (321,000) Delta Company (657,440) 245,000 196,000 (49,560) (266,000) Omega Company $ (291,800) 130,000 91,000 0 Consolidated Totals $(1,667,440) 676,820 626,200 $ (70,800) $ (364, 420) 47,755 Sales Cost of goods sold Operating expenses Income of subsidiary Separate company net income Consolidated net income Net income attributable to noncontrolling interest (Delta Company) Net income attributable to noncontrolling interest (Omega Company) Net income attributable to Alpha Company Retained ings 1/1/21 Net income (above) Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory $ $ 20,000) (321,000) 50,000 $(1,091,000) $ 669,400 296,000 71 CAN (430,000) (266,000) 40,000 ( 656,000) 187,280 470,000 $ (122,000) (70, 800) 50,000 $ (142, 800) $ 26,800 201,000 17,445 $ (299,220) $ (789,716) (299, 220) 50,000 $(1,038,936) $ 883, 480 939, 280 $ Trandman inalaman 939, 280 0 470,000 0 276, 220 467,500 Inventory Investment in Delta Company Investment in Omega Company Property, plant, and equipment Copyrights Total assets Liabilities Common stock Retained earnings 12/31/21 Noncontrolling interest in Delta Company, 12/31/21 Noncontrolling interest in Omega Company, 12/31/21 Total liabilities and equities 296,000 725,600 0 425,000 0 $ 2,116,000 $ (825, 000) (200,000) (1,091,000) 0 201,000 0 0 330,000 0 $ 557,800 $ (315,000) (100,000) (142, 800) 0 $ 1,401,000 (625,000) (120,000) (656,000) 1, 222,500 237,850 $ 3,283,110 $(1,765, 000) (200,000) (1,038,936) (168,384) (110,790) $(3,283, 110) $ (2,116,000) $(1,401,000) $ (557, 800) Note: Parentheses indicate a credit balance. Develop the worksheet entries necessary to derive these reported balances: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries 1 2 3 4 5 6 7 8 ..... 13 > Prepare Entry *G to recognize the intra-entity gross profit in inventory in 2020. On January 1, 2019, Alpha acquired 80 percent of Delta. Of Delta's total business fair value, $131,000 was allocated to copyrights with a 20-year remaining life. Subsequently, on January 1, 2020, Delta obtained 70 percent of Omega's outstanding voting shares. In this second acquisition, $151,800 of Omega's total business fair value was assigned to copyrights that had a remaining life of 12 years. Delta's book value was $520,000 on January 1, 2019, and Omega reported a book value of $162,000 on January 1, 2020. Delta has made numerous inventory transfers to Alpha since the business combination was formed. Intra-entity gross profits of $15,900 were present in Alpha's inventory as of January 1, 2021. During the year, $252,000 in additional intra-entity sales were made with $27,720 in Intra-entity gross profits in inventory remaining at the end of the period. Both Alpha and Delta utilized the partial equity method to account for their investment balances. Following are the individual financial statements for the companies for 2021 with consolidated totals. $ Alpha Company $ (970,200) 542,000 320,000 (212,800) $ (321,000) Delta Company (657,440) 245,000 196,000 (49,560) (266,000) Omega Company $ (291,800) 130,000 91,000 0 Consolidated Totals $(1,667,440) 676,820 626,200 $ (70,800) $ (364, 420) 47,755 Sales Cost of goods sold Operating expenses Income of subsidiary Separate company net income Consolidated net income Net income attributable to noncontrolling interest (Delta Company) Net income attributable to noncontrolling interest (Omega Company) Net income attributable to Alpha Company Retained ings 1/1/21 Net income (above) Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory $ $ 20,000) (321,000) 50,000 $(1,091,000) $ 669,400 296,000 71 CAN (430,000) (266,000) 40,000 ( 656,000) 187,280 470,000 $ (122,000) (70, 800) 50,000 $ (142, 800) $ 26,800 201,000 17,445 $ (299,220) $ (789,716) (299, 220) 50,000 $(1,038,936) $ 883, 480 939, 280 $ Trandman inalaman 939, 280 0 470,000 0 276, 220 467,500 Inventory Investment in Delta Company Investment in Omega Company Property, plant, and equipment Copyrights Total assets Liabilities Common stock Retained earnings 12/31/21 Noncontrolling interest in Delta Company, 12/31/21 Noncontrolling interest in Omega Company, 12/31/21 Total liabilities and equities 296,000 725,600 0 425,000 0 $ 2,116,000 $ (825, 000) (200,000) (1,091,000) 0 201,000 0 0 330,000 0 $ 557,800 $ (315,000) (100,000) (142, 800) 0 $ 1,401,000 (625,000) (120,000) (656,000) 1, 222,500 237,850 $ 3,283,110 $(1,765, 000) (200,000) (1,038,936) (168,384) (110,790) $(3,283, 110) $ (2,116,000) $(1,401,000) $ (557, 800) Note: Parentheses indicate a credit balance. Develop the worksheet entries necessary to derive these reported balances: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries 1 2 3 4 5 6 7 8 ..... 13 > Prepare Entry *G to recognize the intra-entity gross profit in inventory in 2020