Award: 25.00 points Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2 for $100,000. At that dain the rencontre interest had a fair value of $40.500 and Soda reported $70,000 of common stock outstanding and retained earrings of 0.000. The diferentia assigned to buildings and equipment, which had a fair value $20,000 higher than book value and a remaining 10 year , and to paterns, which had a fair value $35.000 higher than book value and a remaining Ide of five years at the date of the business combination. Tnal balances for the companies as of December 31, 20X3, are as follows: Hem Cash & Accounts Receivable Inventory Soda Company Debit Credit $ 21,600 35.000 40.000 260,000 Pop Corporation Debit Credit $ 15,400 165,000 30,000 340.000 109,600 186,000 20.000 16.000 30,000 $140,000 92,400 200.000 Buildings & Equipment Investment in Soda Company Cost of Goods Sold Depreciation Expense Interest Expense Dividends Declared Accumulated Depreciation Accounts Payablo Bonds Payable Bond Premium Common Stock Retained Earnings 79,800 15,000 5,200 15.000 $ 80,000 35.000 100.000 1.600 70,000 60.000 125,000 Sales 120.000 127.900 260,000 13,600 8.100 $962,000 $962,000 Other Income Income from Soda Company $471.600 $471,600 On December 31, 20X2, Soda purchased inventory for $32,000 and sold it to Pop for $48,000. Pop resold $27,000 of the inventory jue., $27.000 of the $48,000 acquired from Soda) during 20x3 and had the remaining balance in inventory at December 31, 20X3. chased for $60,000 to Por toda sold all but $7.600 of the inwento property, plant, and equipment has During 20X3, Soda sold inventory purchased for $60,000 to Pop for $90,000, and Pop resold all but $24,000 of its purchase. On March 10, 20X3. Pop sold inventory purchased for $15,000 to Soda for $30,000. Soda sold all but $7,600 of the inventory prior to December 31, 20%. Assume Pop uses the fully adjusted equity method, that both companies use straight-line depreciation, and that no property, plant, and equipment has been purchased since the acquisition. Required: a. Prepare all consolidation entries needed to prepare a full set of consolidated financial statements at December 31, 20X3. for Pop and Soda no entry is required for a transaction/event, select "No journal entry required in the first account field.) 130000 3/13/2020 Assignment Print View 188 Consolidation Worksheet Entries