Add the second year of consolidated worksheet as well.

(CONSOLIDATED TOTALS FOR AN ACQUISITION WHERE PARENT EMPLOYS the equlty method. Acquisition date falr value allocation Includes long-term debt. Worksheet preparation is a separate requirement.) a. Investment in Mathias: Consideration transferred at 1/1/17 Allison's equity in Mathias 2017 (5480,000 net income, 25,000 dividends) 2018 (5960,000 net income. 50,000 dividends) $5,875,000 Excess acquisition-date fair over book value amortizations: Unpatented technology ($800,000, 8 years) Patents ($2,500,000, 10 years) Long-term debt ($100,000, 5 years) Instructions: 1. Prepare all necessary journal entries under equity method for both years. 2. Calculate goodwill if any. 3. Reconcile the Investment account (in a T account) 4. Prepare the consolidation worksheet (is second year) ALLION TO A C DLATED Comen World For Your Ending December 31, 2016 Consoll d Debit an Entries Card Anon 1400, 000) 4,500,000 375.000 LONDON 2.500.000 17.000 Revenue Coat of good old Depreciation opento Amortation expense Interest expense Equity earnings in Mathias Not Income 55,000 (830,0001 (1,170,000) (1.955.0001 Statement of Retained Earnings Retained earnings 11 Net Income fabove) Dividends declared Retained earnings 12/31 (5,340,000) 01.170,000) 560,000 50.000 141.000 Balance Sheet Cash Accounts receivabla Inventories Investment in Mathias 75 000 950 000 1,700 000 6.580.000 Equipment (net) Patents Unpatented technology Goodwill Total assets Accounts payable Long-term debt Common stock Retained earnings 12/31 Total liabs and equity 3,700,000 195.000 2.125,000 425,000 15,650,000 (500.000) (1,000,000) 18,200,000) 15,950,000) (15,650,000) 12,865.000 16.55.00 2:21 31 31 31 D. ALLISON CORPORATION AND CONSOLIDATED SUBSIDIARY Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Debit Credit Consolid Income Statement Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity earnings in Mathias Net income Allison (6,400,000) 4,500,000 875,000 430,000 55,000 (630,000) (1,170,000) Mathias (3,900,000) 2,500,000 277.000 103,000 60.000 (960,000) Statement of Retained Earnings Retained earnings 1/1 Net income (above) Dividends declared Retained earnings 12/31 (5,340,000) (1,170,000) 560,000 (5,950,000) (1,955,000) (960,000) 50.000 (2,865,000) Balance Sheet Cash Accounts receivable Inventories 75,000 950,000 1.700.000 143,000 225.000 785.000 Statement of Retained Earnings Retained earnings 1/1 Net income (above) Dividends declared Retained earnings 12/31 (5,340,000) (1,170,000) 560,000 (5,950,000) (1,955,000) (960,000) 50,000 (2,865,000) Balance Sheet Cash Accounts receivable Inventories Investment in Mathias 75,000 950,000 1,700,000 6,580,000 143,000 225,000 785,000 2,052,000 1,450,000 Equipment (net) Patents Unpatented technology Goodwill Total assets Accounts payable Long-term debt Common stock Retained earnings 12/31 Total liabilities and equity 3,700,000 95,000 2,125,000 425,000 15,650,000 (500,000) (1,000,000) (8,200,000) (5,950,000) (15,650,000) 4,655,000 (90,000) (1,200,000) (500,000) (2,865,000) (4,655,000) (CONSOLIDATED TOTALS FOR AN ACQUISITION WHERE PARENT EMPLOYS the equlty method. Acquisition date falr value allocation Includes long-term debt. Worksheet preparation is a separate requirement.) a. Investment in Mathias: Consideration transferred at 1/1/17 Allison's equity in Mathias 2017 (5480,000 net income, 25,000 dividends) 2018 (5960,000 net income. 50,000 dividends) $5,875,000 Excess acquisition-date fair over book value amortizations: Unpatented technology ($800,000, 8 years) Patents ($2,500,000, 10 years) Long-term debt ($100,000, 5 years) Instructions: 1. Prepare all necessary journal entries under equity method for both years. 2. Calculate goodwill if any. 3. Reconcile the Investment account (in a T account) 4. Prepare the consolidation worksheet (is second year) ALLION TO A C DLATED Comen World For Your Ending December 31, 2016 Consoll d Debit an Entries Card Anon 1400, 000) 4,500,000 375.000 LONDON 2.500.000 17.000 Revenue Coat of good old Depreciation opento Amortation expense Interest expense Equity earnings in Mathias Not Income 55,000 (830,0001 (1,170,000) (1.955.0001 Statement of Retained Earnings Retained earnings 11 Net Income fabove) Dividends declared Retained earnings 12/31 (5,340,000) 01.170,000) 560,000 50.000 141.000 Balance Sheet Cash Accounts receivabla Inventories Investment in Mathias 75 000 950 000 1,700 000 6.580.000 Equipment (net) Patents Unpatented technology Goodwill Total assets Accounts payable Long-term debt Common stock Retained earnings 12/31 Total liabs and equity 3,700,000 195.000 2.125,000 425,000 15,650,000 (500.000) (1,000,000) 18,200,000) 15,950,000) (15,650,000) 12,865.000 16.55.00 2:21 31 31 31 D. ALLISON CORPORATION AND CONSOLIDATED SUBSIDIARY Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Debit Credit Consolid Income Statement Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity earnings in Mathias Net income Allison (6,400,000) 4,500,000 875,000 430,000 55,000 (630,000) (1,170,000) Mathias (3,900,000) 2,500,000 277.000 103,000 60.000 (960,000) Statement of Retained Earnings Retained earnings 1/1 Net income (above) Dividends declared Retained earnings 12/31 (5,340,000) (1,170,000) 560,000 (5,950,000) (1,955,000) (960,000) 50.000 (2,865,000) Balance Sheet Cash Accounts receivable Inventories 75,000 950,000 1.700.000 143,000 225.000 785.000 Statement of Retained Earnings Retained earnings 1/1 Net income (above) Dividends declared Retained earnings 12/31 (5,340,000) (1,170,000) 560,000 (5,950,000) (1,955,000) (960,000) 50,000 (2,865,000) Balance Sheet Cash Accounts receivable Inventories Investment in Mathias 75,000 950,000 1,700,000 6,580,000 143,000 225,000 785,000 2,052,000 1,450,000 Equipment (net) Patents Unpatented technology Goodwill Total assets Accounts payable Long-term debt Common stock Retained earnings 12/31 Total liabilities and equity 3,700,000 95,000 2,125,000 425,000 15,650,000 (500,000) (1,000,000) (8,200,000) (5,950,000) (15,650,000) 4,655,000 (90,000) (1,200,000) (500,000) (2,865,000) (4,655,000)