7 Glant acquired all of Small's common stock on January 1, 2017, In exchange for cash of $770,000. On that day, Small reported common stock of $170,000 and retained earnings of $400,000. At the acquisition date, $64,000 of the fair-value price was attributed to undervalued land while $59,000 was assigned to undervalued equipment having a 10-year remaining life. The $77,000 unallocated portion of the acquisition-date excess fair value over book value was viewed as goodwill. Over the next few years, Glant applied the equity method to the recording of this Investment. 4 points The following are individual financial statements for the year ending December 31, 2021. On that date, Smallowes Glant $11,500. Small declared and paid dividends in the same period. Credits are indicated by parentheses. eBook Print r References Revenues Cost of goods sold Depreciation expense Equity in income of Small Net income Retained earnings, 1/1/21 Net income (above) Dividends declared Retained earnings, 12/31/21 Current assets Investment in Small Land Buildings (net) Equipment (net) Goodwill Total assets Liabilities Common stock Retained earnings (above) Total liabilities and equities Giant Small $ (1,206,400) $ (524, 000) 595,000 127,000 195,500 217,000 (174,100) $ (590,000) $ (180,000) $(1,660,000) $ $ (654,000) (590,000) (180,000) 280,00 120,000 $ (1,970,000) $ (714,000 $ 413,500 $ 221,000 1,054,500 522,800 211,000 395,000 509,000 740,000 308,000 $ 3,125,000 $ 1,249,000 $ (905,000) $ (365,000) (250,000) (170,000) (1,970,880) (714,000) $ (3,125, 000) $ (1,249,000) a. How was the $174,100 Equity In Income of Small balance computed? b. Determine the totals to be reported by this business combination for the year ending December 31, 2021. c. Prepare a consolidation worksheet for Giant and Small for the year ending December 31, 2021. d. If Giant determined that the entire amount of goodwill from its Investment in Small was Impaired in 2021, what journal entry would Giant make to record such Impairment? 7 (180,000 (654,000) (180,000 120,000 (714,680) 4 points (174,100) $ (590,000) $ $ (1,660, 000) $ (590,000) 288,888 $ (1,970,000) $ $ 413,500 $ 1,054,500 522,000 395,000 740,000 Equity in income of Small Net income Retained earnings, 1/1/21 Net income (above) Dividends declared Retained earnings, 12/31/21 Current assets Investment in Small Land Buildings (net) Equipment (net) Goodwill Total assets Liabilities Common stock Retained earnings (above) Total liabilities and equities 221,080 211,000 509,000 308,000 eBook Print $ 3,125,000 $ 1,249,880 $ (905,000) $ (365,000) (250,000) (170, 880) (1,970,000) (714,000) $ (3,125, 000) $ (1,249,000) References a. How was the $174,100 Equity In Income of Small balance computed? b. Determine the totals to be reported by this business combination for the year ending December 31, 2021. c. Prepare a consolidation worksheet for Glant and Small for the year ending December 31, 2021. d. If Giant determined that the entire amount of goodwill from its Investment In Small was Impalred in 2021, what Journal entry would Glant make to record such Impairment? Complete this question by entering your answers in the tabs below. Required A Required B Required c Required D How was the $174,100 Equity in Income of Small balance computed? Equity in Income of Small S 0 Required A Required B > 7 b. Determine the totals to be reported by this business combination for the year ending December 31, 2021. c. Prepare a consolidation worksheet for Glant and Small for the year ending December 31, 2021. d. If Giant determined that the entire amount of goodwill from its Investment in Small was Impaired in 2021, what journal entry would Glant make to record such Impairment? 4 points Complete this question by entering your answers in the tabs below. eBook Required A Required B Required c Required D Determine the totals to be reported by this business combination for the year ending December 31, 2021. (Input all amounts as positive values.) Print Totals . References Revenues Cost of goods sold Depreciation expense Income of Small Net income Retained earnings, 1/1/21 Dividends declared Retained earnings, 12/31/21 Current assets Investment in Small Land Building (net) Equipment (net) Goodwill Total assets Liabilities Common stock Retained earnings, 12/31/21 Total liabilities and equity 7 L.II SPUI CU LUHISHULLIVII YUINSUICELIUI VIVIILUIU JITU TUI LIIC ycuI CITY VELCIUCI JI, ZUZI. d. If Giant determined that the entire amount of goodwill from Its Investment In Small was Impalred in 2021, what journal entry would Glant make to record such Impalrment? 4 points Complete this question by entering your answers in the tabs below. Required A Required B Required c Required D eBook If Giant determined that the entire amount of goodwill from its investment in Small was impaired in 2021, what journal entry would Giant make to record such impairment? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Print View transaction list References Journal entry worksheet 7 b. Determine the totals to be reported by this business combination for the year ending December 31, 2021. c. Prepare a consolidation worksheet for Glant and Small for the year ending December 31, 2021. d. If Giant determined that the entire amount of goodwill from its Investment in Small was Impaired in 2021, what journal entry would Glant make to record such Impairment? 4 points Complete this question by entering your answers in the tabs below. eBook Required A Required B Required c Required D Determine the totals to be reported by this business combination for the year ending December 31, 2021. (Input all amounts as positive values.) Print Totals . References Revenues Cost of goods sold Depreciation expense Income of Small Net income Retained earnings, 1/1/21 Dividends declared Retained earnings, 12/31/21 Current assets Investment in Small Land Building (net) Equipment (net) Goodwill Total assets Liabilities Common stock Retained earnings, 12/31/21 Total liabilities and equity 7 L.II SPUI CU LUHISHULLIVII YUINSUICELIUI VIVIILUIU JITU TUI LIIC ycuI CITY VELCIUCI JI, ZUZI. d. If Giant determined that the entire amount of goodwill from Its Investment In Small was Impalred in 2021, what journal entry would Glant make to record such Impalrment? 4 points Complete this question by entering your answers in the tabs below. Required A Required B Required c Required D eBook If Giant determined that the entire amount of goodwill from its investment in Small was impaired in 2021, what journal entry would Giant make to record such impairment? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Print View transaction list References Journal entry worksheet