Complete the following consolidation: On January 1, 2020. Placht Corporation exchanged $2,500,000 cash for 80% of the outstanding voting commor stock of Slader Company. The consideration transferred by Placht provided a reasonable basis for assessing the total 1/1/20 fair value of Slader Company. At the acquisition date, Slader reported the following owner's equity amounts in its balance sheet: Common stock $100,000 Additional paid-in capital $400,000 Retained earnings $1,000,000 In determining its acquisition offer, Placht noted that the values for Slader's recorded assets and liabilities approximated their fair values except for the following: Land (indefinite life) was undervalued by S450,000 Buildings and equipment with a 10-year remaining useful life were undervalued by $100,000: A patent with a 12-year remaining useful life was undervalued by $120.000 An internally generated customer base with a 10-year useful life and an assessed fair value of $400,000 was not reflected on Slader's books. Any remaining difference is attributed to goodwill (or gain on bargain purchase). The subsidiary reported net income in 2020 totaling $200,000 and paid dividends totaling $50,000 to the common shareholders. The December 31, 2021 financial statements information for the affiliates is provided below. Other information The gain on sale of land was associated with a land sale by Slader to Tristen Company (an unrelated entity). Required: 1. Develop an EXCEL spreadsheet application for the consolidation of the affiliates. The application should automatically complete as many of the cells as possible in order to minimize needed human intervention. In other words, if we already know what the number will be or where it will come from program the EXCEL application to do it automatically. Think hard. Just about every amount on the consolidation worksheet can be automated via cell reference or cell calculation or LOOKUPS once the financial statements from the affiliates are input into columns B and C. 2. Complete the consolidation worksheet for Placht Company and subsidiary. 3. On separate tabs, prepare a balance sheet and income statement for the consolidated entity in publishable form from the consolidation worksheet. Placht Inc. and Subsidiary Consolidation Worksheet For the year ended December 31, 2021 Placht Slader Accounts Income Statement: Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Interest revenue Gain on sale of land Equity in income of Slader -5,500,000 -2.200.000 1.500.000 1.600.000 400.000 180.000 100.000 90.000 300,000 30,000 -20.000 -50.000 -280,000 Statement of Retained Earnings: Retained earnings, 1/1 - Placht Retained earnings, 1/1 - Slader Net income (see above) Dividends paid - common Retained earnings. 12/31 -6,500,000 -1.150.000 -3.500.000 -350.000 700.000 50,000 -9.300,000 -1,450,000 Net Income -3,500,000 -350.000 Balance Sheet: Cash Accounts receivable Accounts receivable from Slader Inventory Investment in Slader Common Stock Land Buildings and Equipment, net Patents Total Assets Liabilities: Accounts payable Accounts payable to Placht Bonds payable Discount on bonds payable Stockholders' Equity: Common stock Additional paid-in capital Retained earnings 740,000 100.000 990,000 200,000 10,000 1,500,000 300.000 2.860,000 3,500,000 400,0001 5.000.000 1,700.000 600,000 100,000 15,200,000 2,800,000 -600,000 -390,000 -10,000 -3,300.000 - 500.000 50,000 -500.000 -100.000 -1,500,000 -400.000 -9,300,000 -1.450.000 Total liabilities and stockholders' equity -15,200,000 -2.800,000 Complete the following consolidation: On January 1, 2020. Placht Corporation exchanged $2,500,000 cash for 80% of the outstanding voting commor stock of Slader Company. The consideration transferred by Placht provided a reasonable basis for assessing the total 1/1/20 fair value of Slader Company. At the acquisition date, Slader reported the following owner's equity amounts in its balance sheet: Common stock $100,000 Additional paid-in capital $400,000 Retained earnings $1,000,000 In determining its acquisition offer, Placht noted that the values for Slader's recorded assets and liabilities approximated their fair values except for the following: Land (indefinite life) was undervalued by S450,000 Buildings and equipment with a 10-year remaining useful life were undervalued by $100,000: A patent with a 12-year remaining useful life was undervalued by $120.000 An internally generated customer base with a 10-year useful life and an assessed fair value of $400,000 was not reflected on Slader's books. Any remaining difference is attributed to goodwill (or gain on bargain purchase). The subsidiary reported net income in 2020 totaling $200,000 and paid dividends totaling $50,000 to the common shareholders. The December 31, 2021 financial statements information for the affiliates is provided below. Other information The gain on sale of land was associated with a land sale by Slader to Tristen Company (an unrelated entity). Required: 1. Develop an EXCEL spreadsheet application for the consolidation of the affiliates. The application should automatically complete as many of the cells as possible in order to minimize needed human intervention. In other words, if we already know what the number will be or where it will come from program the EXCEL application to do it automatically. Think hard. Just about every amount on the consolidation worksheet can be automated via cell reference or cell calculation or LOOKUPS once the financial statements from the affiliates are input into columns B and C. 2. Complete the consolidation worksheet for Placht Company and subsidiary. 3. On separate tabs, prepare a balance sheet and income statement for the consolidated entity in publishable form from the consolidation worksheet. Placht Inc. and Subsidiary Consolidation Worksheet For the year ended December 31, 2021 Placht Slader Accounts Income Statement: Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Interest revenue Gain on sale of land Equity in income of Slader -5,500,000 -2.200.000 1.500.000 1.600.000 400.000 180.000 100.000 90.000 300,000 30,000 -20.000 -50.000 -280,000 Statement of Retained Earnings: Retained earnings, 1/1 - Placht Retained earnings, 1/1 - Slader Net income (see above) Dividends paid - common Retained earnings. 12/31 -6,500,000 -1.150.000 -3.500.000 -350.000 700.000 50,000 -9.300,000 -1,450,000 Net Income -3,500,000 -350.000 Balance Sheet: Cash Accounts receivable Accounts receivable from Slader Inventory Investment in Slader Common Stock Land Buildings and Equipment, net Patents Total Assets Liabilities: Accounts payable Accounts payable to Placht Bonds payable Discount on bonds payable Stockholders' Equity: Common stock Additional paid-in capital Retained earnings 740,000 100.000 990,000 200,000 10,000 1,500,000 300.000 2.860,000 3,500,000 400,0001 5.000.000 1,700.000 600,000 100,000 15,200,000 2,800,000 -600,000 -390,000 -10,000 -3,300.000 - 500.000 50,000 -500.000 -100.000 -1,500,000 -400.000 -9,300,000 -1.450.000 Total liabilities and stockholders' equity -15,200,000 -2.800,000