Canan Corporation paid $14,400 for a 80% interest in Kodak Corporation on January 1, 2020, when Kodak's stockholders' equity consisted of 58.000 Capital Stock, APIC of $2,000 and 53,000 of Retained Eamine. The des cost over book value was attributable to trademark, which has not been impaired since acquisition date Additional information: 1. Canan ells merchandise to Kodak at 120% of Canan's cost. During 2020, Caran's sales to Kodak were 54,800, of which half of the merchandise remained in Kodak's inventory December 31, 2020. (The 2020 ending inventory was sold in 2001.) During 2021, Caran's sales to Kodak were $6,000 of which 60% remained in Kodak's inventory at December 31, 2021 At year end 2021, Kodowed Caran 54,000 for the Inventory purchased durine 2001 2. Canan Corporation sold equipment with a book value of 52,000 and a remaining setul life of four years and no salvage value to Kodak Corporation on Lanuary 1, 2021 for $2,800 Straight line depreciation is used 3. During 2021, Kodak sold to Canan land for $50,000 that had a book value of $20,000. Canan till owns the land at 12/31/21 4. Separate company financial statements for Canan Corporation and Kodak at December 31, 2021 are surmarired in the first two columns of the coniolidation working papers. See Spreadsheet Tab 1. Prepare the acquisition analysis as of acquisition date. Compute the unamortized differential as of 1/1/2021. 2. Analyze each intercompany transaction. Label as either upstream downstream. 3. SEPARATELY Calculate Net income to the controlling interest for the year 2021 3 4. Verify the calculation of the balance in the acccount equity in sub Searnings and record the parent company entries with respect to its investment during 2021 3 5. Prepare all elimination entries for 2021 3 6. Complete the consolidating spreadsheet for the year ended 2021. 1 INCOME STATEMENT S CONS. TOT EUMINATIONS Dr Cr 14,000 Sales Equity In sub earnings gain on sale of equip Gain on sale of land Total revenues 60,000 4,000 800 74,000 4,000 800 30.000 108,800 30,000 44,000 64,800 26,000 28,000 4,400 3,600 30.400 31,600 54.000 10.800 8,000 36,000 62,000 46.800 0 10.800 36.000 46,800 Cost of goods sold 10 Expenses 1 2 Total expenses 3 Total Net Income 4 Less net income to NCI s Net Income to controlling interest 16 7 8 9 RETAINED EARNINGS 0 STATEMENT 1 2 Retained Earnings 1/1 3 A Net Income 5 6 Dividends declared 7.833 5,000 12,833 10,800 36,000 46,800 7,000 2,000 9.000 8 Retained Earnings 12/31 11,633 139.000 50,633 BALANCE SHEET 1 2 3 cash 4 accts rec 5,500 7.133 33,000 4,000 38.500 11:133 BALANCE SHEET 5,500 7,133 33,000 4,000 10,000 4,500 cash accts rec Dividends rec Inventory Other current assets Land Buildings, net Equipment, net Investment in s trademk 38,500 11,133 0 14,500 0 53,500 0 33,000 18,000 0 50,000 3,500 9,000 24,000 18,000 0 0 . Total assets 114,633 54,000 168,633 53,000 5,000 58,000 0 Accounts payable Dividends payable Other abilities Common stock Additional Pald-in capital 2 Retained earnings 3 noncontrolling interest Total liabilities and equity 50,000 8,000 8,000 2,000 39,000 11.633 0 50,000 2,000 50,633 0 160,633 FALSE 8000 o 114,633 TRUE 54,000 TRUE 1. What is the amount for Trademark shown in the consolidated balance sheet? E. What amount of the intercompany Equipment net gain or loss adjustment be confirmed in 2021? Enter as a positive value if gain or a negative value ifloss adjustment to net income to controlling interest 3. What is the amount of the Net parent company intercompany inventory profit that must be recognized in 2021? Enter as a positive value if net income is increased and negative if decreased. 9. What is the amount of the subsidiary intercompany land gain profit that is confirmed in 2021? 5. What is the NonControlling Interest Claim on the Subsidiary's Net Income? Enter as a positive amount. 5. What is the Net Income Attributed to the Controlling Interest? 7. What are consolidated total assets in the Consolidated Balance Sheet? 8. What is the NonControlling Interest Claim on the Subsidiary's Equity at 12/31/21 as presented in the Consolidated Balance Sheet? 9. What is the adjustment to the land account in the elimination entries? Enter as a positive amount. 10. What are consolidated sales for 2021