B D E F. G Brooke Co. acquired all of the common stock of Fidler Co. on January 1, 20X0. As of that date, Fidler had the following trial balance: Fair Value Cash and short-term investments Accounts receivable Supplies Inventory Equipment - net (8 year life) 1 Buildings net (20 year life) Land B Accounts payable 4 Long term liabilities (Due 12/31/X4) 5 Common stock 6 Additional paid-in-capital 7 Retained earnings 1/1/X0 8 Totals Debit Credit 70,000 50,000 20,000 110,000 240,000 140,000 90,000 $60,000 180,000 300,000 60,000 120,000 $720,000 $720,000 216,000 188,000 102,000 0 1 During 20X0, Fidler reported net income of $96,000 while paying dividends of $12,000. 2 3 Assume that Brooke Co. acquired the common stock of Fidler Co. for $588,000 in cash. 4 Fair value for Equipment, Building and Land are indicated in the above table. 5 Any additional excess of consideration transferred is due to an unamortized patent to be amortized over 10 years. 6 -7 Brooke decided to use the equity method for this investment. -8 -9 Required: 30 31 (A.) Complete the E for the acquisition on January 1, 20X0. (4 points) 82 (B.) Show the entry (ies) made by Brooke to record the acquisition of Fidler on January 1. (3.5 points) 33 (C.) Show the entry (ies made by Brooke to record all of the activity for 20X0 from Fidler using the equity method. (9 points) 34 (D.) Prepare consolidation worksheet entries for December 31, 20X0. (17 points) 35