3 On January I, 2020, Satellite Enterprises (SE) acquired a 55 interest in TV, Inc (TV)) SE paid $3 million cash and 500,000 shares of SE common stock (par value $1 00 per share) At the time of the acquisition, TVl's book value was $16,970,000 On January 1, SE stock had a market value of $14 90 per share and there was no control premium in this transaction TV had the following balances on January I, 2020 Book value Fair value Land $1,700,000 $2,550,000 Buildings (seven ear remaining life) 2,700,000 Equipment (five year remaining life) For internal reporting purposes, SE employed the equity method to account for this investment The following account balances are for the year ending December 31, 2020 for both companies Satellite Enterprise TV, Inc Revenues 298,000,000 103,750,000 Expenses 271,000,000 95,800,000 Equity in income of Subsidiary 4,361,500 Net income 31,361,500 7,950,000 Retained earnings, Jan 1 2,500,000 100,000 Net income (above) 31,361,500 7,950,000 Dividends paid 5,000,000 3,000,000 Retained earnings, Dec 31 28,861,500 5,050,000 Current Assets 30,500,000 20,800,000 Investment in Subsidiary 13,161,500 Land 1,500,000 1,700,000 Buildings 5,600,000 2,360,000 Equipment (net) 3,100,000 2,960,000 Total assets 53,861,500 27,820,000 Accounts payable 3,100,000 4,900,000 Notes payable 1,000,000 Common stock 2,900,000 6,000,000 Additional paid in capital 19,000,000 10,870,000 Retained earnings, Dec 31 28,861,500 5,050,000 Total liabilities stockholders equity 53,861,500 27,820,000 I Use Excel to prepare a consolidation worksheet for this business combination that includes a separate column for Non controlling Interest (NCI) and appropriate row(s) provide a separate worksheet listing the consolidation entries posted on the worksheet Assume goodwill has been reviewed and there is no goodwill impairment 3 Supporting computations should be provided in a third worksheet in the workbook (Note the financial information above is an Excel worksheet object so you should be able to easily start your consolidation worksheet using this data )

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3. On January I, 2020, Satellite Enterprises (SE) acquired a 55% interest in TV, Inc. (TV)). SE paid $3 million cash and 500,000 shares of

3. On January I, 2020, Satellite Enterprises (SE) acquired a 55% interest in TV, Inc. (TV)). SE paid $3 million cash and 500,000 shares of SE common stock (par value $1.00 per share). At the time of the acquisition, TVl's book value was $16,970,000.

On January 1, SE stock had a market value of $14.90 per share and there was no control premium in this transaction. TV! had the following balances on January I, 2020.

	Book value	Fair value
Land	$1,700,000	$2,550,000
Buildings (seven- ear remaining life)	2,700,000
Equipment (five-year remaining life)

For internal reporting purposes, SE employed the equity method to account for this investment.

The following account balances are for the year ending December 31, 2020 for both companies

	Satellite Enterprise	TV, Inc.
Revenues	-298,000,000	-103,750,000
Expenses	271,000,000	95,800,000
Equity in income of Subsidiary	-4,361,500	-
Net income	-31,361,500	-7,950,000

Retained earnings, Jan. 1	-2,500,000	-100,000
Net income (above)	-31,361,500	-7,950,000
Dividends paid	5,000,000	3,000,000
Retained earnings, Dec. 31	-28,861,500	-5,050,000

Current Assets	30,500,000	20,800,000
Investment in Subsidiary	13,161,500	-
Land	1,500,000	1,700,000
Buildings	5,600,000	2,360,000
Equipment (net)	3,100,000	2,960,000
Total assets	53,861,500	27,820,000

Accounts payable	-3,100,000	-4,900,000
Notes payable		-1,000,000
Common stock	-2,900,000	-6,000,000
Additional paid-in capital	-19,000,000	-10,870,000
Retained earnings, Dec. 31	-28,861,500	-5,050,000
Total liabilities & stockholders equity	-53,861,500	-27,820,000

I. Use Excel to prepare a consolidation worksheet for this business combination that includes a separate column for Non-controlling Interest (NCI) and appropriate row(s).

provide a separate worksheet listing the consolidation entries posted on the worksheet.

Assume goodwill has been reviewed and there is no goodwill impairment.

3. Supporting computations should be provided in a third worksheet in the workbook (Note: the financial information above is an Excel worksheet object so you should be able to easily start your consolidation worksheet using this data.)