2.2

Big Co acquired 100% of the common stock of Little Co. on 1/1/22 for $200,000. Little's book value on that date was $200,000, and all assets and liabilities had fair values equal to book value.

In 2022, Little reported earnings of $30,000 and paid dividends of $10,000

In 2023 Little reported earnings of $40,000 and paid dividends of $15,000. The trial balances for 1/1/22, 12/31/22, and 12/31/23 are given below. Required:

Prepare elimination entries at 1/1/22 and complete the "Consolidation at acquisition" (1/1/22) worksheet

1. Prepare elimination entries at 1/1/22 and complete the "Consolidation at acquisition" (1/1/22) worksheet

2. Prepare elimination entries at12/31/23 and complete the "Consolidation at acquisition" (12/31/23) worksheet

3. Prepare elimination entries at12/31/22 and complete the "Consolidation at acquisition" (12/31/22) worksheet

When you answer, please answer using those exact formats. I especially need the answers to the yellow boxes. Thank you!

January 1, 2022 \begin{tabular}{|l|r|r|l|l|l|} \hline & Big & Little & dr & cr & Consol. \\ \hline Cash & 30000 & 20000 & & & \\ \hline Receivables & 35000 & 30000 & & & \\ \hline Inventory & 45000 & 50000 & & & \\ \hline Investment in Little & 200000 & 0 & & & \\ \hline PPE, net & 260000 & 250000 & & & \\ \hline Patents & 30000 & 20000 & & & \\ \hline Other assets & 10000 & 30000 & & & \\ \hline & & & & & \\ \hline Accounts payable & 60000 & 50000 & & & \\ \hline Bonds payable & 200000 & 150000 & & & \\ \hline Common Stock & 150000 & 50000 & & & \\ \hline Retained earnings & 200000 & 150000 & & & \\ \hline \end{tabular} December 31,2022 \begin{tabular}{|l|r|r|l|l|l|} \hline & \multicolumn{1}{|l|}{ Big } & Little & dr & cr & Consol. \\ \hline Sales & 300000 & 250000 & & & \\ \hline Expenses & 250000 & 220000 & & & \\ \hline Investment income & 30000 & & & & \\ \hline Net income & 80000 & 30000 & & & \\ \hline & & & & & \\ \hline Beginning R/E & 200000 & 150000 & & & \\ \hline Add: Income & & & & & \\ \hline Less: Dividends & 20000 & 10000 & & & \\ \hline Ending R/E & & & & & \\ \hline & & & & & \\ \hline Cash & 35000 & 22000 & & & \\ \hline Receivables & 36000 & 27000 & & & \\ \hline Inventory & 40000 & 42000 & & & \\ \hline Investment in Little & 220000 & & & & \\ \hline PPE, net & 250000 & 240000 & & & \\ \hline Patents & 25000 & 15000 & & & \\ \hline Other assets & 64000 & 74000 & & & \\ \hline & & & & & \\ \hline Accounts payable & 60000 & 50000 & & & \\ \hline Bonds payable & 200000 & 150000 & & & \\ \hline Common Stock & 150000 & 50000 & & & \\ \hline Retained earnings & & & & & \\ \hline \end{tabular} December 31, 2023