Big Corp. acquired $60\%$ of Little Inc.$\text{'}$s outstanding shares on January $1,2020,$ for $$300,000$ in cash. On this date, the fairvalue of noncontrolling interest was $$200,000.$ With a ten$-$year remaining useful life, little$’$s equipment was undervaluedby $$42,000.$ Goodwill of $$56,000$ had also been identified. Big applied the equity method.On January $1,2022,$ Big Corp. sold Land with a book value of $$15,000$ to Little for $$20,000.$ Little continues to hold theland.Little issued $$100,000,$ par value $10-$year bonds with a coupon rate of $10$ percent on January $1,2020,$ at $$95,000.$ OnJanuary $1,2023,$ Big purchased a $$40,000$ par value of Little$’$s bonds for $$42,800.$ Both companies amortize bond premiumsand discounts on a straight$-$line basis. Interest payments are made on December $31.$In $2023,$ Little began selling merchandise to Big. That year, inventory costing $$112,000$ was transferred at a price of$$140,000.$ At the end of December $2023,$ Big still has $$50,400$ for inventory shipped from Little.The following financial figures were for the two companies for the year ended December $31,2023.$

 

Revenues Big Corp. ($894,600) Little Inc. ($652,400) Cost of goods sold Expenses Interest expense-bonds Interest income-bond investment Equity in income of Little Inc. Net income Retained earnings, January 1, 2023 483,000 277,200 187,600 225,400 37,800 4,200 (3,600) (15,400) (88,032) 0 ($277,832) ($161,000) ($483,000) ($505,400) Net income (277,832) (161,000) Dividends paid 217,000 85,400 Retained earnings, December 31, 2023 ($543,832) ($581,000) Cash and receivables $186,200 $199,200 Inventory 239,400 121,800 Investment in Little Inc. 487,072 0 Investment in little Inc. bonds 42,400 0 Land 30,000 60,000 Buildings and equipment (net) 318,600 697,400 Total assets $1,303,672 $1,078,400 Accounts payable ($319,200) ($232,400) Bonds payable (80,000) (100,000) Discount on bonds payable 11,360 3,000 Common stock (372,000) (168,000) Retained earnings, December 31, 2023 Total liabilities and stockholders' equity (543,832) ($1,303,672) (581,000) ($1,078,400) Required: 1. Prepare a consolidation worksheet in good form for the year ending December 31, 2023 (on Excel). 2. Prepare the consolidation journal entries.