Alpha Corporation purchased 80% of Bela Company on January 1, 2020, for $149,280 On that date, the non controlling interest had a fair value of $37.320 and Beta reported common stock outstanding of $100.000 and retained earnings of $50,000. The differential is partially comprised as follows: Value Asset Building and Equipment Patents Inventory Remaining Life 10 years 5 years $20,000 10,000 5,000 During 2020 Beta had income of $45,000 and paid dividends of S10.000. Alpha uses the equity method in accounting for its ownership of Bela On December 31, 2021 the trail balance of the companies are as follows. Alpha Corporation Beta Company Income Statement Sales Cost of Goods Sold Depreciation Expense Interest Expense Income From Subsidiary Consolidated Not Income 200,000 -99,800 -25,000 -6,000 32,504 101,704 175,000 -81.000 -17.400 -14.000 82,600 Statement of Retained Earnings Beginning Balance Net Income Less: Dividends Declared Ending Balance 228,560 101,704 -40,000 290,264 85.000 82.600 -20.000 147,600 39.200 135,000 Balance Sheet Cash & Accounts Receivable Inventory Investment in Beta Investment in Bonds of Beta Land Buildings & Equipment Accumulated Depreciation Total Assets 81,400 89,383 173,784 94,823 40,000 504,000 -168.000 815.390 30.000 362.000 -77.400 488,800 41.200 200,000 Accounts Payable Bonds Payable Bond Premium Common Stock Retained Earnings Total Liabilities & Equity & 246.926 80.000 1.200 200.000 290 264 815,390 100.000 147.500 460,800 Beta sold inventory costing $54,000 to Alpha for $101,895 in 2020. Alpha held $11,000 in inventory at the end of 2020. Beta sold inventory costing $97.000 to Alpha in 2021 for $194.000 Alpha held $20,000 in inventory at the end of 2021. On 1/1/2020 Alpha sold equipment with a book value of $9.000 to Beta for $12,000. The equipment originally cost Alpha S16.000 The equipment has a remaining life of 5 years at 1/1/2020. On January 1, 2020 Beta issues 10-year, 11% bonds payable with a par value of $100,000. The bonds are issued at a premium $106,231 to yield the current market interest rate of 10%. A nanaffiliated investor purchases the bonds from Beta. The bonds pay Interest on June 30 and December 31. Both Alpha and Beta amortize the bond premium and discount using the effective interest rate. On December 31, 2020 Alpha purchases the bonds from the nonaffiliated investor for 594,377. Investment - Beta 149,280 NCI 37.320 Allocation of Acquisition Values Acquisition Value Goodwill FV and Asset Excess Value Net Assets Total 186,600 1.600 185.000 35,000 150,0DD 1. Record the equity entries made by Alpha for 2020 and 2021 2. Prepare the analysis and entries required for the worksheet in 2020 and 2021. Alpha Corporation purchased 80% of Bela Company on January 1, 2020, for $149,280 On that date, the non controlling interest had a fair value of $37.320 and Beta reported common stock outstanding of $100.000 and retained earnings of $50,000. The differential is partially comprised as follows: Value Asset Building and Equipment Patents Inventory Remaining Life 10 years 5 years $20,000 10,000 5,000 During 2020 Beta had income of $45,000 and paid dividends of S10.000. Alpha uses the equity method in accounting for its ownership of Bela On December 31, 2021 the trail balance of the companies are as follows. Alpha Corporation Beta Company Income Statement Sales Cost of Goods Sold Depreciation Expense Interest Expense Income From Subsidiary Consolidated Not Income 200,000 -99,800 -25,000 -6,000 32,504 101,704 175,000 -81.000 -17.400 -14.000 82,600 Statement of Retained Earnings Beginning Balance Net Income Less: Dividends Declared Ending Balance 228,560 101,704 -40,000 290,264 85.000 82.600 -20.000 147,600 39.200 135,000 Balance Sheet Cash & Accounts Receivable Inventory Investment in Beta Investment in Bonds of Beta Land Buildings & Equipment Accumulated Depreciation Total Assets 81,400 89,383 173,784 94,823 40,000 504,000 -168.000 815.390 30.000 362.000 -77.400 488,800 41.200 200,000 Accounts Payable Bonds Payable Bond Premium Common Stock Retained Earnings Total Liabilities & Equity & 246.926 80.000 1.200 200.000 290 264 815,390 100.000 147.500 460,800 Beta sold inventory costing $54,000 to Alpha for $101,895 in 2020. Alpha held $11,000 in inventory at the end of 2020. Beta sold inventory costing $97.000 to Alpha in 2021 for $194.000 Alpha held $20,000 in inventory at the end of 2021. On 1/1/2020 Alpha sold equipment with a book value of $9.000 to Beta for $12,000. The equipment originally cost Alpha S16.000 The equipment has a remaining life of 5 years at 1/1/2020. On January 1, 2020 Beta issues 10-year, 11% bonds payable with a par value of $100,000. The bonds are issued at a premium $106,231 to yield the current market interest rate of 10%. A nanaffiliated investor purchases the bonds from Beta. The bonds pay Interest on June 30 and December 31. Both Alpha and Beta amortize the bond premium and discount using the effective interest rate. On December 31, 2020 Alpha purchases the bonds from the nonaffiliated investor for 594,377. Investment - Beta 149,280 NCI 37.320 Allocation of Acquisition Values Acquisition Value Goodwill FV and Asset Excess Value Net Assets Total 186,600 1.600 185.000 35,000 150,0DD 1. Record the equity entries made by Alpha for 2020 and 2021 2. Prepare the analysis and entries required for the worksheet in 2020 and 2021