Company A acquired 100% of Company Bs voting stock on January 1, 2018 by issuing 10,000 shares of its $10 par value common stock.

Company As common stock had a fair value of $14 per share at that time. Company Bs stockholders equity was $105,000 at date of acquisition.

The trademark was undervalued by $10,000. It has an indefinite life. Equipment (with a 5 year life) was undervalued by $5,000. A customer list that had

been created internally had an estimated useful life of 20 years was valued at $20,000.

Following are the financial statements for the two companies for the year ending December 31, 2018.

Step 1. Complete the trial balance of A Company (calculate income of sub and investment in sub) by using the INITIAL VALUE Method

Step 2. Prepare a Consolidated Worksheet for Year Ended December 31, 2018. Include the consolidated and eliminated journal entries in JOURNAL FORM.