DoorDash acquired 51% of the common stock of Wolt on December 31, 2021, for $8,100,000,000. At the date of acquisition, Wolt reported common stock with a par value of $10,000,000,000, additional paid-in-capital of $1,000,000,000, and retained earnings of $4,880,852,941. The fair value of the non-controlling interest at acquisition was $7,782,352,941. The differential at acquisition was attributable to the following items: Inventory (all sold in 2022) Land Goodwill Total Differential 300,000 1560,000 640,000 1,500,000 Throughout 2028, DoorDash sold inventory to Wolt, Wolt sold 60% of the inventory by December 31, 2028 Cost of Inventory to DoorDash S 610,000 Sale Price of Inventory to Wolts 900,000 3 4 On January 1, 2028, DoorDash's inventory contained inventory purchased from Wolt, which had produced the inventory. By Decembe 231,2028. DoorDash had sold all inventory that had been on DoorDashd January 1, 2028 Cost of Inventory to Wolts 89,025 Sale Price of Inventory to DoorDash 5 97.500 5 6 During 2022, DoorDash sold a plot of land that it had purchased several years before to Wolt: Wolt continues to hold the land, 28 Cost of Land to DoorDash S 750,000 29 Sale Price of Land to Wolts 150,000 30 On January 1, 2028, DoorDash purchased equipment from Wolt. Wolt had purchased that equipment on December 31, 2022. The 32 quipment is expected to have a total 15-year life and no salvage value. Both entities use the straight-line method of depreciation and 33 amortization 34 Cost of Equipment to Wolts 71.000 35 Sale Price of Equipment to DoorDash S 100,000 On January 1, 2026, DoorDash sold par value, 10 percent, five-year bonds at 112 directly to Wolt. The bonds pay interest annually on December 31. Both entities amortize bond premiums and discounts on a straight-line basis. Par Value of Bonds $ 100,001 Wolt issued par value 10-year bonds with a coupon rate of 10 percent on January 1, 2025. On December 31, 2027, DoorDash purchased par value of Wolt's bonds, Interest payments are made on July 1 and January 1. Both entities amortize bond premiums and discounts on a straight-line basis. Par Value of Bonds S 900,000 Bond Issue Price $ 895,000 Percentage of Bonds Outstand Purchased 30% Purchase Price of Bond Investments 288,900 As of December 31, 2028, Wolt had declared but not yet paid its fourth-quarter dividend of $5,000, On December 31, 2028, applicable information from the pro-closing trial balances of DoorDash and Wolt appeared in T-Accounts as e follows: 3 Door Dash WOLT Debit Credit Debit Credit Cost of Services 1,368,000,000 82,215,000 Sales and Marketing 957,000,000 54,000,000 7 Research and Development 321,000,000 5,000,000 a General and Administrative 556,000,000 2,535,000 Depreciation and Amortization 120,000,000 36,000,000 Interest Expense 3,000,000 1,850,000 1 Dividends Declared 20,000 2 APIC 6,592,000,000 1,000,000,000 3 Common Stock 10,000,000,000 4 RE (1,613,000,000) 14,900,000,000 5 Sales 2.886,000,000 182,700,000 Intercompany Bond Transfer: (10 points) 1/1/26 Bonds Payable 1/1/26 Amortization 12/31/26 12/31/27 12/11/28 Interco. Int. Esp. Intereo, Int. Inc Ind'Exp Adjustment Net Bond Liability Bond Investment Const. Gain 1/1/26 Bond Investment 1/1/26 Amortization 121126 Investment Balance 12/01/27 nyestment Balance 122128 Investment Balance Is this an UPSTREAM OF DOWNSTREAM transaction? What is the value of the intercompany bond investment on the date of the Intercompany debt transfer Was the band investment purchased at par, a premium or a discount? Is this a DIRECT or an INDIRECT transfer of debt? What is the face value (par value) of the intercompany bond liability on the date of the intercompany debt transfor? Was the bond issued at par, a premium or a discount? If purchased at a premium or a discount, what was the balance of the premium or discount on the date of the intercompany debt transfor? If purchased at a premium or a discount, what is the amount of amortization cach year? What was the balance of the bond investment on 12/31/20282 1 issued at in premium or a discount, what was the balance of the premium or discount on the date of the intercompany debt transfer What is the amount of intercompany interest expense Ir issued at a premium or a discount, what is the amount of amortization cach year? if issued at a premium or a discount, what was the balance of the premium or discount on 123120287 What is the amount of intercompany interest income: What is the intercompany net bond liability on the date of the intercompany debt transfer? What is the amount of intercompany interest incomalexpense adjustment needed: What is the amount of the constructive gain/loss on the transaction, if any: Intercompany Bond Transfer: (10 points) Entire Intercompany 1/1/25 Bonds payable Amortization 12/31/27 Balance 12/31/28 Balance 12/31/27 investment in Bonds Interco. Io. Exp. Interco. Int. Inc. Inc/Exp. Adjustment Amortization 12/31/28 Investment in Bonds Net Bond Liability Bond Investment Const. Gain/Loss Is this an UPSTREAM or DOWNSTREAM transaction? What is the value of the intercompany band investment on the date of the intercompany debt transfor? Was the bond investment purchased at par, a premium or a discount? Is this a DIRECT or an INDIRECT transfer of debt? What is the face value (par value) of the intercompany bond liability on the date of the intercompany debt transfer? If purchased at a premium or a discount, what was the balance of the premium or discount on the date of the intercompany debt transfer? Was the bond issued at par, a premium or a discount? If issued at a premium or a discount, what was the balance of the premium or discount on the date of the intercompany debt transfer? If purchased at a premium or a discount, what is the amount of amortization cach year? What was the balance of the bond investment on 1291/20287 What is the amount of intercompany interest expanse What is the amount of intercompany interest income 1 issued at a premium or a discount, what is the amount of amortization cach 1 issued at a premium or a discount, what was the balance of the premium or discount on 12/31/20287 What is the intercompany net bond liability on the date of the intercompany debt transfer What is the amount of intercompany interest income expense adjustment needed: What is the amount of the constructive gainloss on the transaction, if any Comprehensive Consolidation in a Subsequent Year Requirement 4: Prepare all applicable equity method entries for the year ended, December 31, 2028. Please label each journal entry. (15 points Equity Method Entries 1 2 3 4 5 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 Comprehensive Consolidation in a Subsequent Year Requirement 5: Prepare the elimination entries as of December 31, 2028. Please label each journal entry. (44 points) Elimination Entries