A6 X fx On January 1, 2021, Park Corp. issued 10,000 shares of its common stock ($10 par value, $35 market value) to purchase A B E F G H 1 j 4 1 Complete both parts of the consolidation assignment below. 2 A PORTION OF YOUR GRADE IS ON FORMATTING. 3 *You must format all cells with numbers as Accounting or Currency. Do not include $ in the cells. *You must enter formulas in each of the cells in the consolidation total column. 5 * When completing excel templates add rows if you need additional space. On January 1, 2021, Park Corp. issued 10,000 shares of its common stock ($10 par value, $35 market value) to purchase 100% of the common stock 6 of Sark Company. On date of the acquisition Sark's Equipment (ten-year life) was undervalued $80,000, Trademarks undervalued $70,000, Patents (five-year life) 7 undervalued $50,000, and Long Term Liabilities undervalued $30,000. Part 1: Break the cost of the Investment into its component elements on the date of acquisition. Identify what makes up each element. 8 Label your numbers and show your computations. 9 10 11 12 13 23 24 25 Part III: Complete the consolidation worksheet. Enter the necessary 12/31/2021 consolidation entries. Label your entries (S and A) in 26 narrow column beside entries. Enter formulas in the consolidation total column to complete the worksheet. 27 1/1/2021 Park 1/1/2021 Sark Consolidation Entries 1/1/2021 28 Company Company Debit Credit Consolidated 29 Income Statement 30 Revenues 846,000 31 Cost of Goods Sold (410,000) 32 Amortization Expense (90,000) 33 Depreciation Expense (120,000) 34 Operating Expenses (100,000) 35 Net Income 126,000 36 37 Statement of Retained Earnings 38 Retained Earnings 1/1 388,000 39 Net Income (above) 126,000 40 Dividends Declared (64,000) 41 Retained Earnings 12/31 450,000 42 Balance Sheet 43 Current Assets 145,000 20,000 44 Investment in Sax Company 350,000 0 45 46 Equipment-net 500,000 180,000 47 Trademarks 40,000 0 48 Patents 270,000 110,000 49 Goodwill 0 0 50 Total Assets 1,305,000 310,000 51 Current Liabilities (80,000) (94,000) 52 Long-term Liabilities (175,000) (76,000) 53 Common Stock (320,000) (20,000) 54 Additional Paid-in Capital (280,000) (40,000) 55 Retained Earnings-above (450,000) (80,000) 56 Total Liabilities & Equities (1,305,000) (310,000) 57 58 59