Donna Company acquired 75 percent of the stock of Sons Inc. on January 1, 2015, for $280,000. On this date, the balances of Sons stockholders equity accounts were Common Stock, $195,000, and Retained Earnings, $45,000. As of that date, the fair market value for the 25% of shares not purchased by Donna was $90,000.

On January 1, 2015, Sons recorded book values were equal to fair values for all items except four: (1) accounts receivable had a book value of $55,000 and a fair value of $48,000, (2) property, plant & equipment, net, had a book value of $150,000 and a fair value of $168,000, (3) a previously unrecorded customer list intangible asset had a book value of $0 and a fair value of $30,000, and (4) notes payable had a book value of $30,000 and a fair value of $25,000. Both companies use the FIFO inventory method and sell all of their inventories at least once a year. The year-end net balance of accounts receivables are collected in the following year. On the acquisition date, Sons PP&E, net had a remaining life of 10 years, the customer list had a remaining life of four years, and the note payable had a remaining term of five years.

On January 1, 2018, Donna sold a building to Sons for $80,000. On this date, the building was carried on Donnas books at a cost of $100,000 with accumulated depreciation of $45,000. Both companies estimated that the building has a remaining life of 10 years on the intercompany sale date, with no salvage value.

Each company routinely sells merchandise to the other company, with a profit margin of 40 percent of selling price (regardless of the direction of the sale). During 2019, intercompany sales amount to $50,000, of which $20,000 remains in the ending inventory of Sons. On December 31, 2019, $10,000 of these intercompany sales remain unpaid. Additionally, Donnas December 31, 2018 inventory includes $15,000 of merchandise purchased in the preceding year from Sons. During 2018, intercompany sales amount to $40,000, and on December 31, 2018, $8,000 of these intercompany sales remain unpaid.

Donna accounts for its investment in Sons using the equity method. Unconfirmed profits are allocated pro-rata.

Debits	Donna	Sons
Cash	$58,080	$42,500
Accounts Receivable	81,000	60,000
Inventories	195,000	91,500
Property, plant & equipment, net	189,000	135,000
Other assets	85,500	150,000
Investment in Sons	325,500	-
Cost of good sold	432,000	162,000
Depreciation & amortization expenses	18,000	14,400
operating expenses	226,000	54,100
Interest expenses	8,000	3,500
Dividend	90,000	21,000
Total debits	$1,708,080	$734,000
Credit
Accounts payable	$168,000	$35,000
Notes payable	80,980	30,000
Other liabilities	33,000	39,000
Common stocks	360,000	195,000
Retained earnings (Jan. 1, 2019)	322,200	165,000
sales	720,000	270,000
equity income (loss) from Sons	23,900	-
Total credit	$1,708,080	$734,000

Required:

1. In one worksheet, prepare a consolidation spreadsheet using the December 31, 2019 pre-closing trial balance information for Donna and Sons provided at the following page.

2. Program formulas in additional worksheets that result in the following consolidated financial statements: Income Statement; Statement of Retained Earnings; Balance Sheet.

3. Prepare schedules that compute the following:

a. Goodwill (as computed on January 1, 2015)

b. Equity income from Sons (for 2019)

c. Investment in Sons as of December 31, 2019

d. Income attributable to the noncontrolling interest (for 2019)

e. Noncontrolling interest as of December 31, 2019.

4. Prepare a separate list of the consolidating entries, properly labeled, that are included in the consolidation spreadsheet.