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could you help me with A,B,C to help me get started Consolidation VIE, Intercompany Debt and Preferred Stock - Equity Method Assume that a Reporting

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could you help me with A,B,C to help me get started
Consolidation VIE, Intercompany Debt and Preferred Stock - Equity Method Assume that a Reporting Company has a 20% interest in Legal Entity that is reported at cost of $100,000. On January 1, 2019, RC acquires an additional 15% interest in LE common stock for $90,000 and a 35% interest in LE's $500,000, 10% preferred stock for $175,000. The fair value of the remaining 65% interest of common stock is $400,000. The book value and fair value of the preferred stock are the same. The LE is determined to be a VIE and the RC is the primary beneficiary beginning on January 1, 2019. The retained earnings on January 1, 2019 are $100,000. On January 1, 2019, the fair value of the identifiable net assets equaled the book value of identifiable net assets except for a patent with a fair value of $200,000 and book value of $0. The patent has an estimated life of 10 years. On January 1, 2020, RC sold equipment to LE for $120,000. The equipment had a book value of $200,000 and a remaining life of 5 years. On January 1, 2020, the LE issued $1,000,000 (face) 6 percent, five-year bonds to the RC for $865,798. The bonds pay interest annually on December 31, and the bond discount is amortized using the straight-line method. On January 1, 2021, the RC paid $300,000 to purchase 40% of the outstanding LE 8%, $800,000, 10 year bonds issued on January 1, 2015 for $917,761. Interest is paid annually on December 31. Any premium or discount is amortized on a straight-line basis. The Parent and the Subsidiary report the following financial statements for the year ended December 31, 2022: Income Statement RC VIE Sales $1,100,000 $900.000 Cost of goods sold 440.000 450.000 Gross Profit 560,000 450.000 Income (loss) from VIE 7 315 6% Bond interest income -73.4201 8% Bond interest income 30.600 6% Bond interest expensel -73 420 8% Bond interest expensel Operating expenses 230.000 210.000 Net income $ 394 495 $114 356 Statement of Retained Earnings RC VIE BOY Retained Earnings $4,000,000 $450,000 Net income 394 495 114.356 Preferred Dividends 1-50.000 Dividends 200.000 - 10.000 EOY Retained Earnings $4.194 495 5504 356 Balance Sheet RcVIE 750.000 Assets: Cash Accounts receivable Inventory VIE Investment Investment in 6% bonds investment in 8% bonds PPE.net $ 1.750.000 $ 800.000 800 000 1.200.000 250.000 518.446 906.050 310,000 14 046 480 4031.937 $19.530 98 55831.937 Liabilities and Stockholders' Equity Accounts payable Current Liabilities 8% Bonds payable, net 6% Bond Payable, net Long-term Liabilities Preferred Stock Common Stock APIC Retained Earnings $ 1,870,000 S 838,000 2200 000 1.100.000 823,522 906,059 2226.100 950.000 500,000 1,162,000 10,000 7,878,390 200,000 4.194 495 504 356 $19.530 985 $5831,937 a. Allocate the purchase price to the net assets acquired and to the Cland NCI at the acquisition date. b. Calculate the intercompany gain or loss on the equipment transaction. c. Prepare amortization schedules for the two bond issues. d. Prepare an amortization schedule for the investment in the 8% bond issue. .. Calculate the gain or loss on the consolidated debt retirement. 1. Compute income (loss) from VIE on Reporting company's books. g. Compute consolidated net income, income attributable to the controlling interest and income attributable to the noncontrolling interest. h. Compute the EOY Equity Investment and noncontrolling interest balance at December 31, 2022. i. Prepare the consolidating entries. Consolidation VIE, Intercompany Debt and Preferred Stock - Equity Method Assume that a Reporting Company has a 20% interest in Legal Entity that is reported at cost of $100,000. On January 1, 2019, RC acquires an additional 15% interest in LE common stock for $90,000 and a 35% interest in LE's $500,000, 10% preferred stock for $175,000. The fair value of the remaining 65% interest of common stock is $400,000. The book value and fair value of the preferred stock are the same. The LE is determined to be a VIE and the RC is the primary beneficiary beginning on January 1, 2019. The retained earnings on January 1, 2019 are $100,000. On January 1, 2019, the fair value of the identifiable net assets equaled the book value of identifiable net assets except for a patent with a fair value of $200,000 and book value of $0. The patent has an estimated life of 10 years. On January 1, 2020, RC sold equipment to LE for $120,000. The equipment had a book value of $200,000 and a remaining life of 5 years. On January 1, 2020, the LE issued $1,000,000 (face) 6 percent, five-year bonds to the RC for $865,798. The bonds pay interest annually on December 31, and the bond discount is amortized using the straight-line method. On January 1, 2021, the RC paid $300,000 to purchase 40% of the outstanding LE 8%, $800,000, 10 year bonds issued on January 1, 2015 for $917,761. Interest is paid annually on December 31. Any premium or discount is amortized on a straight-line basis. The Parent and the Subsidiary report the following financial statements for the year ended December 31, 2022: Income Statement RC VIE Sales $1,100,000 $900.000 Cost of goods sold 440.000 450.000 Gross Profit 560,000 450.000 Income (loss) from VIE 7 315 6% Bond interest income -73.4201 8% Bond interest income 30.600 6% Bond interest expensel -73 420 8% Bond interest expensel Operating expenses 230.000 210.000 Net income $ 394 495 $114 356 Statement of Retained Earnings RC VIE BOY Retained Earnings $4,000,000 $450,000 Net income 394 495 114.356 Preferred Dividends 1-50.000 Dividends 200.000 - 10.000 EOY Retained Earnings $4.194 495 5504 356 Balance Sheet RcVIE 750.000 Assets: Cash Accounts receivable Inventory VIE Investment Investment in 6% bonds investment in 8% bonds PPE.net $ 1.750.000 $ 800.000 800 000 1.200.000 250.000 518.446 906.050 310,000 14 046 480 4031.937 $19.530 98 55831.937 Liabilities and Stockholders' Equity Accounts payable Current Liabilities 8% Bonds payable, net 6% Bond Payable, net Long-term Liabilities Preferred Stock Common Stock APIC Retained Earnings $ 1,870,000 S 838,000 2200 000 1.100.000 823,522 906,059 2226.100 950.000 500,000 1,162,000 10,000 7,878,390 200,000 4.194 495 504 356 $19.530 985 $5831,937 a. Allocate the purchase price to the net assets acquired and to the Cland NCI at the acquisition date. b. Calculate the intercompany gain or loss on the equipment transaction. c. Prepare amortization schedules for the two bond issues. d. Prepare an amortization schedule for the investment in the 8% bond issue. .. Calculate the gain or loss on the consolidated debt retirement. 1. Compute income (loss) from VIE on Reporting company's books. g. Compute consolidated net income, income attributable to the controlling interest and income attributable to the noncontrolling interest. h. Compute the EOY Equity Investment and noncontrolling interest balance at December 31, 2022. i. Prepare the consolidating entries

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