ACCT. 4300: ADVANCED ACCOUNTING ASSIGNMENT 7 p-75\%. NCl25% Pepper Company acquites 7,500 shares in Sultan Company for $315,000 in cash on January 1, 20X1. when Sultan Company has the following balance sheet The fair value of the current assets is $69,000 and is entirely received in one year. The fair value of the equipment is $125,000 which has a life of five years. The current labalities have a fair value of $73,000 and will be settled over two years. Any excess of the price paid over fair value is attributable to goodwill. Pepper Company uses the sophisticated equity method to record its investment in Sultan Company. The following trial balances of the two companies are prepared on December 31, 20X1: 1. Prepare a determination and distribution of excess schedule (a value analysis is not needed) for the investment. 2. Prepare all the eliminations and adjustments that would be made on the 20X1 consolidated worksheet. 3. Prepare the 20X1 consolidated income statement and its related income distribution schedules. 4. Prepare the 20X1 statemeat of retained earnings. 5. Prepare the 20X1 consolidated balance sheet. ACCT. 4300: ADVANCED ACCOUNTING ASSIGNMENT 7 p-75\%. NCl25% Pepper Company acquites 7,500 shares in Sultan Company for $315,000 in cash on January 1, 20X1. when Sultan Company has the following balance sheet The fair value of the current assets is $69,000 and is entirely received in one year. The fair value of the equipment is $125,000 which has a life of five years. The current labalities have a fair value of $73,000 and will be settled over two years. Any excess of the price paid over fair value is attributable to goodwill. Pepper Company uses the sophisticated equity method to record its investment in Sultan Company. The following trial balances of the two companies are prepared on December 31, 20X1: 1. Prepare a determination and distribution of excess schedule (a value analysis is not needed) for the investment. 2. Prepare all the eliminations and adjustments that would be made on the 20X1 consolidated worksheet. 3. Prepare the 20X1 consolidated income statement and its related income distribution schedules. 4. Prepare the 20X1 statemeat of retained earnings. 5. Prepare the 20X1 consolidated balance sheet