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Acme Corporation has been operating profitably since its creation in 1 9 9 8 . At the beginning of 2 0 2 2 , Acme

Acme Corporation has been operating profitably since its creation in 1998. At the beginning of 2022, Acme acquired a 70 percent ownership in Beta Company. At the acquisition date, Acme prepared the following fair-value allocation schedule:
Consideration transferred for 70% interest in Beta $ 843,500
Fair value of the 30% noncontrolling interest 361,500
Beta business fair value $ 1,205,000
Beta book value 821,000
Excess fair value over book value $ 384,000
Assignments to adjust Betas assets to fair value:
To buildings (20-year remaining life) $ 156,000
To equipment (4-year remaining life)(33,000)
To franchises (10-year remaining life)49,000
To trademarks (indefinite life)212,000384,000
0
Acme regularly buys inventory from Beta at a markup of 25 percent more than cost. Acme's purchases during 2022 and 2023 and related ending inventory balances follow:
Year Intra-Entity Purchases Remaining Intra-Entity Inventory End of Year (at transfer price)
2022 $ 90,000 $ 30,000
2023125,00050,000
During 2024, Acme acquired additional inventory from Beta at a price of $278,000. Of this merchandise, 45 percent is still held at year-end.
On January 1,2024, Acme and Beta acted together as co-acquirers of 80 percent of Cade Company's outstanding common stock. The total price of these shares was $256,800, indicating neither goodwill nor other specific fair-value allocations. Each company put up one-half of the consideration transferred.
Items Acme Corporation Beta Company Cade Company
Sales and other revenues $ (938,229) $ (884,500) $ (363,400)
Cost of goods sold 573,000384,000196,000
Operating expenses 287,000298,50092,400
Income of Beta Company (148,771)00
Income of Cade Company (30,000)(30,000)0
Net income $ (257,000) $ (232,000) $ (75,000)
Retained earnings, 1/1/24 $ (892,000) $ (669,000) $ (171,000)
Net income (above)(257,000)(232,000)(75,000)
Dividends declared 100,00096,00060,000
Retained earnings, 12/31/24 $ (1,049,000) $ (805,000) $ (186,000)
Cash and receivables $ 60,859 $ 352,600 $ 68,250
Inventory 275,300398,00085,950
Investment in Beta Company 1,022,44100
Investment in Cade Company 134,400134,4000
Buildings 441,000382,000171,000
Equipment 367,000132,00089,300
Land 261,000340,00023,500
Total assets $ 2,562,000 $ 1,739,000 $ 438,000
Liabilities $ (693,000) $ (624,000) $ (102,000)
Common stock (820,000)(310,000)(150,000)
Retained earnings, 12/31/24(1,049,000)(805,000)(186,000)
Total liabilities and equities $ (2,562,000) $ (1,739,000) $ (438,000)
Note: Parentheses indicate a credit balance.
Required:
Using the three companies financial records for 2024, prepare a consolidation worksheet. The equity method has been applied to each investment.
Note: For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.

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