Alpha Company purchased 100% of the outstanding stock of Beta, Inc., on January 1, 2023, for a purchase price of $1,600,000. At the acquisition date, Beta's book value consisted of common stock of $800,000 and retained earnings of $550,000. Alpha attributed the cost over book to machinery with an estimated 10-year remaining useful life. Alpha uses the equity method to account for its investment in Beta.

During the next two years, Beta reported the following:

Year	Income	Dividends Declared	Inventory Transfers to Alpha at Transfer Price
2023	$270,000	$60,000	$280,000
2024	305,000	75,000	310,000

Beta sells inventory to Alpha after a markup based on a gross profit rate. At the end of 2023 and 2024, 30 percent of the current year's purchases remain in Alpha's inventory.

Required

Create an Excel spreadsheet that computes the following:

1. Investment in Beta, Inc., account as of December 31, 2024.
2. Worksheet adjustments (consolidation journal entries) for the December 31, 2024, consolidation of Alpha and Beta.

Your solution should be formulated so that Beta's gross profit rate on sales to Alpha is treated as a variable (this requires using formulas in your Excel spreadsheet!). Most amounts should be formula-driven so that when you change the gross profit rate (or any other variable), all other numbers update, including the equity income, balance in the investment account, and amount of the worksheet adjustments. Use formulas everywhere you reasonably can.

Not sure where to start or what all to include in your solution? Here are suggestions:

• Acquisition Date Allocation, including the calculation of any amortization.
• Intra-entity inventory transfers (this could be just a small table calculating the amount of unrealized intra-entity profit) - this one isn't necessary because you can embed the calculations elsewhere, but seeing it separately usually helps students, and the more detail you have, the more partial credit I can award if you make mistakes.
• Equity Income for each year (these are needed to help arrive at the investment balance).
• Investment in Beta
• Consolidation entries
• I also recommend having a small section somewhere in the worksheet with "given" information so that any formulas you use can pull from it (Beta's income and dividends, etc.).

Alpha Company purchased 100% of the outstanding stock of Beta, Inc., on January 1, 2023, for a purchase price of $1,600,000. At the acquisition date, Beta's book value consisted of common stock of $800,000 and retained earnings of $550,000. Alpha attributed the cost over book to machinery with an estimated 10-year remaining useful life. Alphauses the equity method to account for its investment in Beta. During the next two years, Beta reported the following: Year Income Dividends Declared Inventory Transfers to Alpha at Transfer Price $280,000 2023 $270,000 $60,000 2024 305,000 75,000 310,000 Beta sells inventory to Alpha after a markup based on a gross profit rate. At the end of 2023 and 2024, 30 percent of the current year's purchases remain in Alpha's inventory. Required Create an Excel spreadsheet that computes the following: 1. Investment in Beta, Inc., account as of December 31, 2024. 2. Worksheet adjustments (consolidation journal entries) for the December 31, 2024, consolidation of Alpha and Beta. Your solution should be formulated so that Beta's gross profit rate on sales to Alpha is treated as a variable (this requires using formulas in your Excel spreadsheet!). Most amounts should be formula-driven so that when you change the gross profit rate (or any other variable), all other numbers update, including the equity income, balance in the investment account, and amount of the worksheet adjustments. Use formulas everywhere you reasonably can. Not sure where to start or what all to include in your solution? Here are suggestions: o Acquisition Date Allocation, including the calculation of any amortization. o Intra-entity inventory transfers (this could be just a small table calculating the amount of unrealized intra-entity profit) - this one isn't necessary because you can embed the calculations elsewhere, but seeing it separately usually helps students, and the more detail you have, the more partial credit I can award if you make mistakes. o Equity Income for each year (these are needed to help arrive at the investment balance). o Investment in Beta o Consolidation entries . I also recommend having a small section somewhere in the worksheet with "given" information so that any formulas you use can pull from it (Beta's income and dividends, etc.)