Consolidation case using equity and investment methods, need fv allocation schedules, consolidation entries etc. Requirements are listed on the 1st page of the work book

Consolidation Case On January 1, 2014, Plant Company purchased 80% of the common stock of Sun Company for $1,162 2014 $525,000 $67,500 Income Dividends 2015 $540,000 $82,500 2016 $487,500 $97,500 On December 31, 2013, just prior to the acquisition, the balance sheets of Plant Company and Sun Com Cash Accounts receivable (net) Inventory Land Liabilities Common stock Additional paid in capital Retained earnings Plant 2,475,000 600,000 900,000 1,350,000 $5,325,000 Sun (Book) 772,500 285,000 187,500 150,000 $1,395,000 Sun (Market) 772,500 285,000 187,500 225,000 $1,470,000 750,000 375,000 4,200,000 $5,325,000 300,000 450,000 150,000 495,000 $1,395,000 345,000 Required: 1. Assume that Plant accounts for the acquisition using the Equity method. Use the informatio incomplete worksheet information presented on the following pages to consolidate the financi In working the consolidations, please provide the following information: 1. The Equity method entries that Plant would make each year 2. The Allocation Schedule to allocate excess fair values 3. The consolidation entries 4. The Completed worksheets showing the consolidated totals 2. Assume that Plant accounts for the acquisition using the Initial Value method (i.e., the Cost incomplete worksheet information to consolidate the financial statements for Plant and Sun for n Company for $1,162,500. Sun reported the following: Company and Sun Company were as follows: thod. Use the information above as well as the o consolidate the financial statements for Plant and Sun for 2014, 2015 & 2016. uld make each year ss fair values consolidated totals ue method (i.e., the Cost method). Use the information above as well as the appropriate ents for Plant and Sun for 2014, 2015 and 2016. Please provide all the same information as #1 above. Pre-consolidation Worksheet 12/31/2014 INCOME STATEMENT Net sales Cost of sales Other expenses Equity Income Consolidated NI To NCI To Controlling Interest STATEMENT OF RETAINED EARNINGS Retained earnings, 1/1/2014 NI Divs End RE BALANCE SHEET Cash Accounts receivable net Inventory Land Goodwill Equity Investment Trial Balances Plant Sun 1,200,000 615,000 322,500 420,000 682,500 975,000 375,000 75,000 525,000 4,200,000 682,500 75,000 4,807,500 495,000 525,000 67,500 952,500 2,149,500 637,500 1,200,000 1,350,000 1,102,500 345,000 405,000 150,000 1,528,500 Total Assets 6,865,500 2,002,500 Liabilities Common stock Other paid in capital Retained Earnings NCI-Equity 933,000 750,000 375,000 4,807,500 450,000 450,000 150,000 952,500 Total L +E 6,865,500 2,002,500 Pre-consolidation worksheet 12/31/2015 Trial Balances Plant INCOME STATEMENT Net sales Cost of sales Other expenses Equity Income Consolidated NI To NCI To Controlling Interest STATEMENT OF RETAINED EARNINGS Retained earnings, 1/1/15 NI Divs End RE BALANCE SHEET Cash Accounts receivable net Inventory Land Goodwill Equity Investment Sun 1,177,500 543,000 327,000 432,000 739,500 1,026,000 430,500 55,500 4,807,500 739,500 105,000 5,442,000 952,500 540,000 82,500 1,410,000 3,000,000 663,000 1,024,500 1,350,000 1,452,000 465,000 312,000 150,000 540,000 1,894,500 Total Assets 7,932,000 2,379,000 Liabilities Common stock Other paid in capital Retained Earnings NCI-Equity 1,365,000 750,000 375,000 5,442,000 369,000 450,000 150,000 1,410,000 Total L +E 7,932,000 2,379,000 Pre-consolidation worksheet 12/31/2016 Trial Balances Plant INCOME STATEMENT Net sales Cost of sales Other expenses Equity Income Consolidated NI To NCI To Controlling Interest STATEMENT OF RETAINED EARNINGS Retained earnings, January 1 NI Divs End RE BALANCE SHEET Cash Accounts receivable net Inventory Land Goodwill Equity Investment Sun 1,177,500 543,000 327,000 390,000 697,500 984,000 438,000 58,500 5,442,000 697,500 105,000 6,034,500 1,410,000 487,500 97,500 1,800,000 2,919,000 631,500 915,000 1,800,000 1,477,500 600,000 375,000 150,000 487,500 2,206,500 Total Assets 8,472,000 2,602,500 Liabilities Common stock Other paid in capital Retained Earnings NCI-Equity 1,312,500 750,000 375,000 6,034,500 202,500 450,000 150,000 1,800,000 Total L +E 8,472,000 2,602,500 12/31/14 Trial Balances Plant INCOME STATEMENT Net sales Cost of sales Other expenses Dividend Income Consolidated NI To NCI To Controlling Interest Sun 1,200,000 615,000 322,500 54,000 316,500 975,000 375,000 75,000 525,000 STATEMENT OF RETAINED EARNINGS Retained earnings, January 1 NI Divs 4,200,000 316,500 75,000 495,000 525,000 67,500 End RE 4,441,500 952,500 2,149,500 637,500 1,200,000 1,350,000 1,102,500 345,000 405,000 150,000 BALANCE SHEET Cash Accounts receivable net Inventory Land Goodwill Investment in Sun 1,162,500 - Total Assets 6,499,500 2,002,500 Liabilities Common stock Other paid in capital Retained Earnings NCI Equity 933,000 750,000 375,000 4,441,500 450,000 450,000 150,000 952,500 Total L +E 6,499,500 2,002,500 12/31/15 Trial Balances Plant INCOME STATEMENT Net sales Cost of sales Other expenses Div Income Consolidated NI To NCI To Controlling Interest Sun 1,177,500 543,000 327,000 66,000 373,500 1,026,000 430,500 55,500 540,000 STATEMENT OF RETAINED EARNINGS Retained earnings, January 1 NI Divs 4,441,500 373,500 105,000 952,500 540,000 82,500 End RE 4,710,000 1,410,000 3,000,000 663,000 1,024,500 1,350,000 1,452,000 465,000 312,000 150,000 BALANCE SHEET Cash Accounts receivable net Inventory Land Goodwill Investment in Sun 1,162,500 - Total Assets 7,200,000 2,379,000 Liabilities Common stock Other paid in capital Retained Earnings NCI Equity 1,365,000 750,000 375,000 4,710,000 369,000 450,000 150,000 1,410,000 Total L +E 7,200,000 2,379,000 12/31/16 Trial Balances Plant INCOME STATEMENT Net sales Cost of sales Other expenses Dividend Income Consolidated NI To NCI To Controlling Interest Sun 1,177,500 543,000 327,000 78,000 385,500 984,000 438,000 58,500 487,500 STATEMENT OF RETAINED EARNINGS Retained earnings, January 1 NI Divs 4,710,000 385,500 105,000 1,410,000 487,500 97,500 End RE 4,990,500 1,800,000 2,919,000 631,500 915,000 1,800,000 1,477,500 600,000 375,000 150,000 BALANCE SHEET Cash Accounts receivable net Inventory Land Goodwill Investment in Sun 1,162,500 - Total Assets 7,428,000 2,602,500 Liabilities Common stock Other paid in capital Retained Earnings NCI 1,312,500 750,000 375,000 4,990,500 202,500 450,000 150,000 1,800,000 Total L +E 7,428,000 2,602,500