During 2020, Jackson reported net income of $96,000 while paying dividends of $12,000. During 2021, Jackson reported net income of $132,000 while paying dividends of $36,000.

Assume that Matthews Co. acquired the common stock of Jackson Co. for $700,000 in cash. As of

January 1, 2020, Jackson's land had a fair value of $120,000, its buildings were valued at $120,000, and its equipment was appraised at $280,000. The Long-term liabilities represent bonds payable which had a fair value of $189,000. Any excess of consideration transferred over fair value of assets and liabilities acquired is due to an unamortized patent to be amortized over 10 years.

Matthews decided to use the initial value method for this investment.

Prepare consolidation worksheet entries for December 31, 2020

Matthews Co. obtained all of the common stock of Jackson Co. on January 1, 2020. As of that date, Jackson had the following trial balance: De bit $ 60,000 $ 50,000 60,000 140,000 70,000 300,000 Accounts payable Accounts receivable Additional paid -in capital Buildings - net (20-year life) Cash and short-term investments Common stock Equipment.net (8-year life) Inventory Land Long-term liabilities (mature 1/1/22) Retained earnings, 1/1/20 Supplies Totals 240,000 110,000 90,000 180,000 120,000 20,000 $ 720.000 $720,000 During 2020, Jackson reported net income of 596,000 while paying dividends of S12,000. During 2021, Jackson reported net income of $132.000 while paying dividends of S36,000. Assume that Matthews Co. acquired the common stock of Jackson Co. for $700,000 in cash. As of January 1, 2020, Jackson's land had a fair value of $120,000, its buildings were valued at $120,000, and its equipment was appraised at $280,000. The Long-term liabilities represent bonds payable which had a fair value of $189,000. Any excess of consideration transferred over fair value of assets and liabilities acquired is due to an unamortized patent to be amortized over 10 years. Matthews decided to use the initial value method for this investment Required: Prepare consolidation worksheet entries for December 31, 2020