Carson, Inc., acquires 80 percent of the outstaniding common stock of Gardena corporation on January 1, 2020, in exchange for $900,000 cash.

At the acquisition date, Gardena's total fair value, including the noncontrolling interest, was assessed at $1,125,000. Also at the acquisition date,

Gardena's book value was $690,000.

Several individual items on Gardena's financial records had fair values that differed from their book values as follows:

Book value

Fair value

Trademark (indefinite life)

$360,000

$383,000

Property and equipment (net, 8-year remaining useful life)

290,000

330,000

Patent (14-year remaining useful life)

132,000

272,000

For internal reporting purposes, Carson, inc., employs the equity method to account for this investment. The following account balances are for the year

ending December 31, 2020, for both companies. At year-end, there were no intra-entity receivables or payables.

Carson

Gardena

Revenues

($1,400,000)

($825,000)

Cost of goods sold

774,000

395,750

Depreciation expense

328,000

36,250

Amortization expense

0

28,000

Equity in income of Gardena

($280,000)

0

Net income

($578,000)

($365,000)

Retained earnings (1/1/2020)

($1,275,000)

($530,000)

Net income

($578,000)

($365,000)

Dividends declared

300,000

50,000

Retained earnings (12/31/2020)

($1,553,000)

($845,000)

Current assets

$860,000

$432,250

Investment in Gardena

1,140,000

0

Trademark

240,000

360,000

Property and equipment (net)

1,030,000

253,750

Patents

0

104,000

Total assets

3,270,000

1,150,000

Accounts payable

($142,000)

($145,000)

Common stock

($300,000)

($120,000)

Additional paid-in capital

($1,275,000)

($40,000)

Retained earnings (12/31/2020)

($1,553,000)

($845,000)

Total liabilities and equities

($3,270,000)

($1,150,000)

12. What is the consolidated balance for additional paid in capital at December 31, 2020?

13. What is the consolidated balance for common stock at December 31, 2020?

14. What is the consolidated balance for revenue at December 31, 2020?

15. What is the consolidated balance for cost of goods sold at December 31, 2020?

16. Suppose Carson used the initial value method to record its investment in Gardena in 2020.

The working paper entry to eliminate the difference in accounting methods between equity method and the initial value method in 2021? (Consolidated Journal Entry *C)

Your answer:

17. Suppose Carson used the partial equity method to record its investment in Gardena in 2020.

The working paper entry to eliminate the difference in accounting methods between equity method and the partial equity method in 2021? (Consolidated Journal Entry *C)

Your answer:

Can you please just provide those question ans, not the whole sheet. Thank You