Assignments-201730, x) D chapter 7 G Solved House Corporat. G skved Mighty Compan -G House Corporat tpx m Apps D New Tab CampeWhitney q shared folder Mighty Company purchased a 60 percent interest in Lowly Company on January 1, 2013, for $593,400 in cash. Lowly's book value at that date was reported as $790,000 and the fair value of the noncontroling nterest was assessed at $395,600. Any excess acquisition-date fair value over Lowty's book value is assigned to trademarks to be amortized over 20 years. Subsequently, on January 1, 2014, Lowly acquired a 20 percent interest in Mighty The price of $420,000 was equivalent to 20 percent of Mighty's book and fair value. Neither company has paid dividends since these acquisitions occurred. On January 1, 2014, Lowly's book value was $1,049000, a figure that rises to $1,091,500 (Common Stock of $300,000 and Retained Eamings of $791,500) by year-end. Mighty's book value was $2. 10 million at the beginning of 2014 and $2 20 million (Common Stock of $1 million and Retained Earnings of $1,200,000) at December 31, 2014 No intra-ensty transactions have occurred and no additional stock has been sold. Each company applies the initial value method in accounting for the individual investments a. Prepare worksheet entries which are required to consolidate these two companies for 2014? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) (1) Prepare Entry C vestment in Lowly 149,430 stock (Mighty) (2) Prepare Entry $1 ommon stock (Lowly) 49,000 in Lowly 629 nterest in Lowty 419,600 (3) Prepare Entry $2 reasury stock vestment in Mighty 420,000 420.000 (4) Prepare Entry A 199,000 in Lowly ncontroling interest in Lowly (5) Prepare Entry E ype her 9