Could you show me the calculation to find each of this number please? Thanks!
11. Award: 10 out of 10.00 points On January 1, 2019, Monica Company acquired 80 percent of Young Company's outstanding common stock for $904,000. The fair value of the noncontrolling interest at the acquisition date was $226,000. Young reported stockholders' equity accounts on that date as follows: Common stock-$10 par value $ 200,000 Additional paid-in capital 90,000 Retained earnings 650,000 In establishing the acquisition value, Monica appraised Young's assets and ascertained that the accounting records undervalued a building (with a five-year remaining life) by $50,000. Any remaining excess acquisition-date fair value was allocated to a franchise agreement to be amortized over 10 years. During the subsequent years, Young sold Monica inventory at a 40 percent gross profit rate. Monica consistently resold this merchandise in the year of acquisition or in the period immediately following. Transfers for the three years after this business combination was created amounted to the following: Inventory Remaining at Year-End Year Transfer Price (at transfer price) 2019 $ 50,000 $ 34,000 2020 70,000 36,000 2021 80,000 42,000 In addition, Monica sold Young several pieces of fully depreciated equipment on January 1, 2020, for $60,000. The equipment had originally cost Monica $98,000. Young plans to depreciate these assets over a 6-year period. In 2021, Young ears a net income of $220,000 and declares and pays $75,000 in cash dividends. These figures increase the subsidiary's Retained Earnings to a $980,000 balance at the end of 2021. Monica employs the equity method of accounting. Hence, it reports $164.880 investment income for 2021 with an Investment account balance of $1,056,960. Prepare the worksheet entries required for the consolidation of Monica Company and Young Company. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) No Transaction Debit Credit 1 1 Accounts Retained eamings, 1/1/21 (Young) Cost of goods sold 14.400 14.400 2 2. Investment in Young Equipment Accumulated depreciation-Equipment 50,000 38.000 88,000 3 3 No journal entry required 4 4 Common stock - Young Additional paid-in capital - Young Retained eamings, 1/1/21 (Young) Investment in Young Noncontrolling interest in Young 200,000 90.000 820,600 888.480 222.120 5 5 112.000 30,000 Franchise agreement Buildings Investment in Young Noncontrolling interest in Young 113.600 28.400 6 6 164,880 Investment income Investment in Young 164 880 7 7 60,000 . Investment in Young Dividends declared 60.000 8 8 10,000 14,000 Depreciation expense Amortization expense Buildings Franchise agreement 10.000 14,000 9 9 80.000 Sales Cost of goods sold 80.000 10 10 16,800 Cost of goods sold Inventory 16.800 11 11 10,000 Accumulated depreciation Equipment Depreciation expense 10.000
