Bamb-Bamb Incorporated acquired 75 percent of the outstanding common stock of Pebbles Corporation on January 1, 2013. Bamb-Bamb Incorporated paid a total of $835,000 in cash for these shares. The 25 percent noncontrolling interest shares had a total fair value of $255,000 both before and after Bamb-Bamb Incorporated's acquisition. The Book Value of Pebbles Corporation's Net Assets on January 1, 2013 was $465,000, which included the following:

Pebbles Corporations January

1, 2013 Owners Equity

Common Stock($135,000)

Additional Paid In Capital($160,000)

Retained Earnings, January 1, 2013($170,000)

Bamb-Bamb Incorporated uses the Partial Equity method for

internal recordkeeping to monitor the activities of Pebbles Corporation. At the

acquisition date, the carrying amounts of Pebbles Corporation's assets and

liabilities were generally equivalent to the fair value except for the

following:

Assets/Liabilities

Book Value Fair Value Remaining Useful Life

Equipment(Net) $65,000 $110,000 10 Years

Buildings (Net) $295,000 $500,000 20 Years

Land $100,000 $150,000 N/A

Loan Payable ($250,000) ($300,000) 8

Years

Fiscal Year 2014 Data:

On January 1, 2014 Bamb-Bamb Inc sold Pebbles Corp a Building

for $120,000 cash. The Buildings net book value on January 1, 2014 was $80,000

and its originally purchased price was $100,000. The building is expected to be

usable for another 16 years. Both Bamb-Bamb and Pebbles use the straight line

method for depreciating assets.

Questions 7 - A) Calculate

the annual excess amortization using the acquisition date fair value over book

value of the identifiable assets and liabilities on the date of acquisition.

ANSWER 7-A:

Annual Ammortization of Excess Fair Value Over

Book$8,500.00

Fair Value of Pebbles Identified Net Assets $715,000.00

Question 7 - B)Prepare

the consolidated journal entries on December 31, 2015 for the Intra-Entity

Building Transfer.

Answer 7-B: DONE

Question 7 - C)The following consolidated worksheet for Bamb-Bamb Incorporated and Pebbles Corporation is to be used along with the information provided above to determine the consolidated balances "1)" through "9)" below [Note: Calculations are involved]: SEE ATTACHED PICTURES FOR BALANCE SHEET TO CONSOLIDATE.

ANSWER: ?

Bamb-Bamb Incorporated & Pebbles Corporation Consolidated Worksheet For Year Ending Dec ember 31, 2015 Accounts Bamb-Bamb Pebbles Corporation Consolidated Entries Noncontrolling Consolidated Debit Credit Income Statement Sales Revenue ($535,000) ($510,000) ($1,045,000) Cost of Goods Sold $211,900 $135,000 $346,900 Utilities Expense $76,000 $68,000 $144,000 Deprecation Expense $85,000 $80,000 2.) $14,750 1.) $2,500 $177,250 Interest Expense $65,000 $27,000 2.) $6,250 $85,750 Investment Income ($150,000) 3.) $150,000 Separate Company Net Income ($247, 100) $200,000) Consolidated Net Income ($291, 100) Net Income Attributable To Noncontrolling Interest 4.) ($48,500) $48,500 Net Income Attributable to Bamb-Bamb Corporation ($242,600) Statement of Retained Earnings Retained Earnings 1/1/15 ($556,925) ($231,000) 5.) $12,750 ($506,675) 6.) $37,500 7.) $231,000 Net Income (Above) ($247, 100) ($200,000) ($242,600) Dividends Declared $95,400 $60,000 8.) $45,000 8.) $15,000 $95,400 Retained Earnings 12/31/15 ($708,625) ($371,000) ($653,875)