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Comprehensive Problem: Differential Apportionment Mortar Corporation acquired 80 percent ownership of Granite Company on January 1, 20X7, for $173,000. At that date, the fair value

"Comprehensive Problem: Differential Apportionment Mortar Corporation acquired 80 percent ownership of Granite Company on January 1, 20X7, for $173,000. At that date, the fair value of the noncontrolling interest was $43,250. The trial balances for the two companies on December 31, 20X7, included the following amounts:" image text in transcribed

"Additional Information 1. On January 1, 20X7, Granite reported net assets with a book value of $150,000 and a fair value of $191,250. 2. Granites depreciable assets had an estimated economic life of 11 years on the date of combina- tion. The difference between fair value and book value of Granites net assets is related entirely to buildings and equipment. 3. Mortar used the equity method in accounting for its investment in Granite. 4. Detailed analysis of receivables and payables showed that Granite owed Mortar $16,000 on December 31, 20X7. 5. Assume that any goodwill impairment should be recorded as an adjustment in Mortars equity method accounts along with the amortization of other differential components. Required a. Give all journal entries recorded by Mortar with regard to its investment in Granite during 20X7. b. Give all eliminating entries needed to prepare a full set of consolidated financial statements for 20X7. c. Prepare a three-part consolidation worksheet as of December 31, 20X7."

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