Company A acquired 100% of Company B's voting stock on January 1, 2013 by issuing 10,000 shares of its $10 par value common stock. Company A's common stock had a fair value of $14 per share at that time. Company B's stockholder's equity was $105,000 (book value) 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. Credit balances are indicated by (parentheses). Complete the trial balance of A Company (calculate income of sub and investment in sub) by using the three different investing accounting methods; Equity, Intial Value, and Partial Equity Then, continue by preparing a consolidated worksheet for year ended Dec. 31, 2018. Include your consolidation and elimination entries in journal form with the exam. A Company (485,000) 160,000 130,000 B Company Revenues COGS Depreciation Exp (190,000) 70,000 52,000 Net Income (68,000) R/E, 1/1 Net income (above) Dividends paid R/E, 12/31 (40,000) (68,000) 40,000 (609,000) 175,500 Cash Trademark Buildings & Eqp (net) 268,000 427,500 713,000 17,000 58,000 161,000 Total Assets 236,000 Liabilities (190,000) (600,000) (90,000) (103,000) (60,000) (5,000) (68,000) Common Stock APIC R/E (above) Total Liabilities & Equity Company A acquired 100% of Company B's voting stock on January 1, 2013 by issuing 10,000 shares of its $10 par value common stock. Company A's common stock had a fair value of $14 per share at that time. Company B's stockholder's equity was $105,000 (book value) 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. Credit balances are indicated by (parentheses). Complete the trial balance of A Company (calculate income of sub and investment in sub) by using the three different investing accounting methods; Equity, Intial Value, and Partial Equity Then, continue by preparing a consolidated worksheet for year ended Dec. 31, 2018. Include your consolidation and elimination entries in journal form with the exam. A Company (485,000) 160,000 130,000 B Company Revenues COGS Depreciation Exp (190,000) 70,000 52,000 Net Income (68,000) R/E, 1/1 Net income (above) Dividends paid R/E, 12/31 (40,000) (68,000) 40,000 (609,000) 175,500 Cash Trademark Buildings & Eqp (net) 268,000 427,500 713,000 17,000 58,000 161,000 Total Assets 236,000 Liabilities (190,000) (600,000) (90,000) (103,000) (60,000) (5,000) (68,000) Common Stock APIC R/E (above) Total Liabilities & Equity