As the Senior Accountant of Ohio Corporation, you voted yes to support your Company's acquisition of 80 percent of the 100,000 outstanding voting shares of Springfield Inc. for $6.70 per share on January 1, 2020. The remaining 20 percent of Springfield's shares also traded actively at $6.70 per share before and after Ohio Corporation's acquisition. An appraisal made on that date determined that all book values appropriately reflected the fair values of Springfield's underlying accounts except that a building with a 5- year future life was undervalued by $57,000 and a fully amortized trademark with an estimated 10-year remaining life had a $69,000 fair value. At the acquisition date, Springfield Inc. reported common stock of $100,000 and a retained earnings balance of $224,000. Following are the separate financial statements for the year ending December 31, 2021: Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/21 Net income (above) Dividends declared Retained earnings, 12/31/21 Current assets Investment in Devine, Inc. Buildings and equipment (net) Trademarks Total assets Liabilities Common stock Retained earnings, 12/31/21 (above) Total liabilities and equities Ohio Corporation $ $ $ Springfield, Inc. $ $ (777,000) $ (294,000) (232,000) (103,000) 90,000 20,000 (919,000) $ (377,000) 238,500 $177,000 536,000 0 870,000 357,000 137,000 188,000 $ 1,781,500 $ 722,000 $ (542,500) $ (245,000) (320,000) (100,000) (919,000) (377,000) $ (1,781,500) $ (722,000) At year-end, there were no intra-entity receivables or payables. (800,000) $ (379,500) 285,000 146,000 299,000 130,500 (16,000) 0 (232,000) $ (103,000)

As the Senior Accountant of Ohio Corporation, you voted yes to support your Company's acquisition of 80 percent of the 100,000 outstanding voting shares of Springfield Inc. for $6.70 per share on January 1,2020. The remaining 20 percent of Springfield's shares also traded actively at $6.70 per share before and after Ohio Corporation's acquisition. An appraisal made on that date determined that all book values appropriately reflected the fair values of Springfield's underlying accounts except that a building with a 5year future life was undervalued by $57,000 and a fully amortized trademark with an estimated 10-year remaining life had a $69,000 fair value. At the acquisition date, Springfield Inc. reported common stock of $100,000 and a retained earnings balance of $224,000. Following are the separate financial statements for the year ending December 31, 2021: At year-end, there were no intra-entity receivables or payables. Johnson Kim, the CEO of your Company, needed to present information on the Acquisition of Springfield Inc. at the Annual Shareholders and Directors Meeting scheduled for February 25, 2022. To fulfill this, the CEO tasked you to perform the following: a. Prepare a worksheet to consolidate these two companies as of December 31,2021. b. Prepare a 2021 consolidated income statement for Ohio Corporation and Springfield Inc. c. Provide five reasons why your Company made that huge acquisition. d. Provide examples of 5 acquisitions in the United States from 2000-2023. Include information on the year of acquisition, the Parent Company's name, the Subsidiary Company's name, and consideration transferred (amount paid) by the parent company. Please use the template below for question d: List the source of your information in the reference section of your work. e. Considering the Net Income attributable to Ohio Corporation in the 2021 Consolidated Income Statement, would you recommend your Company keep/sell all its investment in Springfield Inc.? Why? f. If, instead, the noncontrolling interest shares of Springfield Inc. had traded for $4.50 surrounding Ohio Corporation's acquisition date, what is the impact on goodwill