Can I please have help with this? There is a template that is attached as well that can be used.
Problem 11-3 (LO 3, 5) Translate a trial balance and prepare a consolidation worksheet with excess of cost over book value traceable to equipment. Due to increasing pressures to expand globally, Pueblo Corporation acquired a 100% interest in Sorenson Company, a foreign company, on January 1, 2016. Pueblo paid 12,000,000 FC, and Sorenson's equity consisted of the following: Common stock...................................... 3,000,000FC Paid-in capital in excess of par ......................... Retained earnings ..................... ........... ... 2,000,000 4,200,000 Total.............. ........... ........... .......... 9,200,000FC On the date of acquisition, equipment with a 10-year life was undervalued by 500,000 FC. Any remaining excess of cost over book value is attributable to additional equipment with a 20-year life. The trial balances for Pueblo and Sorenson as of December 31,2018, are as follows: Pueblo Corporation Sorenson Company Cash .................... ........... ........ 4,050,000 Accounts Receivable ........ ........... ........ Inventory ...... ........... ........... ........ 5,270,000 5,540,000 Investment in Sorenson ...... ........... ........ 2,840,000 FC 3,990,000 5,800,000 20,969,000 Fixed Assets.......... ........... ........... .. 21,000,000 15,000,000 Accumulated Depreciation ..... ........... ...... (12,560,000) (6,800,000) Accounts Payable ............................. (3,450,000) Long-Term Debt ....... ........... ........... .. (10,000,000) (5,000,000) (1,580,000) Common Stock ............................... (4,000,000) (3,000,000) Paid-In Capital in Excess of Par .. ........... ...... (6,500,000) Retained Earnings ,January 1,2018... ............ (12,180,000) (7,950,000) Sales ......... ........... ........... ........ (2,000,000) (26,000,000) (10,000,000) Cost of Goods Sold ............................ 16,380,000 7,500,000 Operating Expenses ........................... 3,210,000 1,200,000 Subsidiary Income............................. (1,729,000) Totals ....... ........... ........... ........ 0 0 FC The investment in Sorenson consists of the following: Initial investment (12,000,000 FC $1.20) ....... ......... $14,400,000 2016Income (1,750,000 FC $1.28).................... 2,240,000 2017Income (2,000,000 FC $1.30).................... 2,600,000 2018Income.............. ........... ........... ..... 1,729,000 Total.. ........... ........... ...................... $20,969,000 Relevant exchange rates are as follows: 1FC January 1,2016 .. ........... ...... $1.20 2016Average......... ........... . 1.28 January 1,2017 .. ........... ...... 1.25 2017Average......... ........... . 1.30 December 31,2018................ 1.31 2018Average......... ........... . 1.33 Required: Assuming the FC is Sorenson's functional currency, prepare a consolidated worksheet
