a. Prepare a worksheet to consolidate the separate 2018 financial statements for Atlantic and Warren companies.

b. Prepare US GAAP compliant Consolidated Balance Sheet and Consolidated Income Statement as of December 31, 2018, and for the year then ended.

PLEASE SHOW ALL WORK ! MUST KNOW WHERE YOU GOT DEBITS AND CREDITS FROM

The individual financial statements for Atlantic Company and Warren Company for the year ending December 31, 2018, follow. Atlantic acquired a 60 percent interest in Warren on January 1, 2017, in exchange for various considerations totaling $840,000 At the acquisition date, the fair value of the noncontrolling interest was $560,000 and Warren's book value was $1,120,000. Warren had developed internally a customer list that was not recorded on its books but had an acquisition date fair value of $280,000. This intangible asset is being amortized over 20 years. Atlantic sold Warren land with a book value of $90,000 on January 2, 2017, for $190,000. Warren still holds this land at the end of the cu Warren regularly transfers inventory to Atlantic. In 2017, it shipped inventory costing $198,000 to Atlantic at a price of $330,000. During 2018, intra-entity shipments totaled $380,000, although the original cost to Warren was only $266,000. In each of these years, 20 percent of the merchandise was not resold to outside parties until the period following the transfer. Atlantic owes Warren $50,000 at the end of 2018. Sales Cost of goods sold Operating expenses Equity in earnings of Warren Net income Retained earnings, 1/1/18 Net income (above) Dividends declared Retained earnings, 12/31/18 Cash Data Sheet1 destination and press ENTER or chest Pay Atlantic Company 12/31/2018 S -980,000 680,000 170,000 -93,000 -223,000 $ 1.296,000 -223,000 115,000 $ -1,404,000 $ 187,000 Warren Company 12/31/2018 $ -680,000 480,000 45,000 0 S - 155,000 $ -710,000 -155,000 60,000 5 -805,000 $ 90,000 Cost of goods sold operating expenses Equity in earnings of Warren Net income Retained earnings, 1/1/18 Net income (above) Dividends declared Retained earnings, 12/31/18 Cash Accounts receivable Inventory Investment in Warren Land Buildings and equipment (net) Total assets luabilities Common stock Additional paid-in capital Retained earnings, 12/31/18 Total liabilities and equities 170,000 -93,000 -223,000 $ 1,296,000 -223,000 115,000 1,404,000 187,000 392,000 570,000 1,011,000 150,000 514,000 S 2,824,000 S -650,000 -770,000 0 -1,404,000 $ 2,824,000 45,000 0 $ 155,000 $ 710,000 155,000 60,000 S -805,000 S 90,000 590,000 500,000 0 570,000 480,000 $ 2,230,000 S - 825,000 -500,000 - 100,000 -805,000 $ 2,230,000 (Note: Negative number indicate a credit balance.) The individual financial statements for Atlantic Company and Warren Company for the year ending December 31, 2018, follow. Atlantic acquired a 60 percent interest in Warren on January 1, 2017, in exchange for various considerations totaling $840,000 At the acquisition date, the fair value of the noncontrolling interest was $560,000 and Warren's book value was $1,120,000. Warren had developed internally a customer list that was not recorded on its books but had an acquisition date fair value of $280,000. This intangible asset is being amortized over 20 years. Atlantic sold Warren land with a book value of $90,000 on January 2, 2017, for $190,000. Warren still holds this land at the end of the cu Warren regularly transfers inventory to Atlantic. In 2017, it shipped inventory costing $198,000 to Atlantic at a price of $330,000. During 2018, intra-entity shipments totaled $380,000, although the original cost to Warren was only $266,000. In each of these years, 20 percent of the merchandise was not resold to outside parties until the period following the transfer. Atlantic owes Warren $50,000 at the end of 2018. Sales Cost of goods sold Operating expenses Equity in earnings of Warren Net income Retained earnings, 1/1/18 Net income (above) Dividends declared Retained earnings, 12/31/18 Cash Data Sheet1 destination and press ENTER or chest Pay Atlantic Company 12/31/2018 S -980,000 680,000 170,000 -93,000 -223,000 $ 1.296,000 -223,000 115,000 $ -1,404,000 $ 187,000 Warren Company 12/31/2018 $ -680,000 480,000 45,000 0 S - 155,000 $ -710,000 -155,000 60,000 5 -805,000 $ 90,000 Cost of goods sold operating expenses Equity in earnings of Warren Net income Retained earnings, 1/1/18 Net income (above) Dividends declared Retained earnings, 12/31/18 Cash Accounts receivable Inventory Investment in Warren Land Buildings and equipment (net) Total assets luabilities Common stock Additional paid-in capital Retained earnings, 12/31/18 Total liabilities and equities 170,000 -93,000 -223,000 $ 1,296,000 -223,000 115,000 1,404,000 187,000 392,000 570,000 1,011,000 150,000 514,000 S 2,824,000 S -650,000 -770,000 0 -1,404,000 $ 2,824,000 45,000 0 $ 155,000 $ 710,000 155,000 60,000 S -805,000 S 90,000 590,000 500,000 0 570,000 480,000 $ 2,230,000 S - 825,000 -500,000 - 100,000 -805,000 $ 2,230,000 (Note: Negative number indicate a credit balance.)