5. (20 pts) Flounder purchased 100% of Sole for $325,000 on Jan 1, 2021. On that date,
Equipment was considered undervalued by $60,000 and had a five year life, and
Other Intangibles were overvalued by $10,000 and had a four year life.
Book Value of Sole on that date was $150,000. Goodwill accounts for the rest of the excess.
Below are the income and dividends for 2021 for Sole as reported by Sole:
					2021
Income					$50,000
Dividends					$10,000

a. Prepare a schedule of distribution of excess of cost/fair value at Jan 1, 2020 and any amortization of assets:

b. Using the equity method, record the entries on the books of Flounder below to reflect activity with Sole for 2021, including the original purchase.

c. Below are the balances of the accounts for Flounder and Sole at December 31, 2021. Prepare consolidation entries on the worksheet and complete the consolidatied statements. You must complete the Flounder balance sheet first.