Canan Corporation paid $16,200 for a 90% interest in Kodak Corporation on January 1, 2020, when Kodak's stockholders' equity consisted of $9,000 Capital Stock, APIC of $1,000 and $3,000 of Retained Earnings. The excess cost over book value was attributable to trademark, which has not been impaired since acquisition date. Additional information: 1. Canan sells merchandise to Kodak at 120% of Canan's cost. During 2020, Canan's sales to Kodak were $4,800, of which half of the merchandise remained in Kodak's inventory at December 31, 2020. (The 2020 ending inventory was sold in 2021.) During 2021, Canan's sales to Kodak were $6,000 of which 60% remained in Kodak's inventory at December 31, 2021. At year-end 2021, Kodak owed Canan $5,000 for the inventory purchased during 2021. Required: Follow and label each step. 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 4. Verify the calculation of the balance in the acccount equity in sub earnings and record the parent company entries with respect to its investment during 2021 5. Prepare all elimination entries for 2021 6. Complete the consolidating spreadsheet for the year ended 2021. 2. Canan Corporation sold equipment with a book value of $2,000 and a remaining useful life of four years and no salvage value to Kodak Corporation on January 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 still owns the land at 12/31/21. * Please provide all required parts - not just partial answers* 4. Separate company financial statements for Canan Corporation and Kodak at December 31, 2021 are summarized in the first two columns of the consolidation working papers. See Spreadsheet Tab. INCOME STATEMENT P S CONS.TOT ELIMINATIONS Dr Cr 14,000 Sales Equity in sub earnings gain on sale of equip Gain on sale of land Total revenues 60,000 4,600 800 74,000 4,600 800 30,000 109,400 30,000 44,000 65,400 Cost of goods sold Expenses 26,000 28,000 4,400 3,600 30,400 31,600 54,000 11,400 8,000 36,000 Total expenses Total Net income Less net income to NCI Net income to controlling i 62,000 47,400 0 47,400 11,400 36,000 RETAINED EARNINGS STATEMENT Retained Earnings 1/1 9,500 5,000 14,500 Net income 11,400 36,000 47,400 Dividends declared 7,000 2,000 9,000 Retained Earnings 12/31 13,900 39,000 52,900 BALANCE SHEET 5,500 7,000 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 trademark 50,000 3,500 38,500 11,000 0 14,500 0 53,500 0 33,000 20,400 0 0 9,000 24,000 20,400 0 Total assets 116,900 54,000 170,900 5,000 Accounts payable 53,000 Dividends payable Other liabilities Common stock 50,000 Additional Paid-in capital Retained earnings 13,900 noncontrolling interest Total liabilities and equity 116,900 TRUE 9,000 1,000 39,000 58,000 0 0 59,000 1,000 52,900 0 0 170,900 0 TRUE 0 54,000 TRUE 1. What is the amount for Trademark shown in the consolidated balance sheet? 2. 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 if loss 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. 4. 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. 6. 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? Canan Corporation paid $16,200 for a 90% interest in Kodak Corporation on January 1, 2020, when Kodak's stockholders' equity consisted of $9,000 Capital Stock, APIC of $1,000 and $3,000 of Retained Earnings. The excess cost over book value was attributable to trademark, which has not been impaired since acquisition date. Additional information: 1. Canan sells merchandise to Kodak at 120% of Canan's cost. During 2020, Canan's sales to Kodak were $4,800, of which half of the merchandise remained in Kodak's inventory at December 31, 2020. (The 2020 ending inventory was sold in 2021.) During 2021, Canan's sales to Kodak were $6,000 of which 60% remained in Kodak's inventory at December 31, 2021. At year-end 2021, Kodak owed Canan $5,000 for the inventory purchased during 2021. Required: Follow and label each step. 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 4. Verify the calculation of the balance in the acccount equity in sub earnings and record the parent company entries with respect to its investment during 2021 5. Prepare all elimination entries for 2021 6. Complete the consolidating spreadsheet for the year ended 2021. 2. Canan Corporation sold equipment with a book value of $2,000 and a remaining useful life of four years and no salvage value to Kodak Corporation on January 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 still owns the land at 12/31/21. * Please provide all required parts - not just partial answers* 4. Separate company financial statements for Canan Corporation and Kodak at December 31, 2021 are summarized in the first two columns of the consolidation working papers. See Spreadsheet Tab. INCOME STATEMENT P S CONS.TOT ELIMINATIONS Dr Cr 14,000 Sales Equity in sub earnings gain on sale of equip Gain on sale of land Total revenues 60,000 4,600 800 74,000 4,600 800 30,000 109,400 30,000 44,000 65,400 Cost of goods sold Expenses 26,000 28,000 4,400 3,600 30,400 31,600 54,000 11,400 8,000 36,000 Total expenses Total Net income Less net income to NCI Net income to controlling i 62,000 47,400 0 47,400 11,400 36,000 RETAINED EARNINGS STATEMENT Retained Earnings 1/1 9,500 5,000 14,500 Net income 11,400 36,000 47,400 Dividends declared 7,000 2,000 9,000 Retained Earnings 12/31 13,900 39,000 52,900 BALANCE SHEET 5,500 7,000 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 trademark 50,000 3,500 38,500 11,000 0 14,500 0 53,500 0 33,000 20,400 0 0 9,000 24,000 20,400 0 Total assets 116,900 54,000 170,900 5,000 Accounts payable 53,000 Dividends payable Other liabilities Common stock 50,000 Additional Paid-in capital Retained earnings 13,900 noncontrolling interest Total liabilities and equity 116,900 TRUE 9,000 1,000 39,000 58,000 0 0 59,000 1,000 52,900 0 0 170,900 0 TRUE 0 54,000 TRUE 1. What is the amount for Trademark shown in the consolidated balance sheet? 2. 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 if loss 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. 4. 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. 6. 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