Dynamic Golf manufactures & markets golf equipment. On 1/1/21, Dynamic acquires Sports Unlimited, a distributor of sports equipment. Dynamic's intention for acquiring Sports is to have Sports be another outlet for the sale of Dynamic's golf equipment.

Dynamic paid cash of $368,000 for 75% of Sports' outstanding common stock. Sports book value on 1/1/21 was $320,000. Common stock was $100,000 & Retained Earnings was $220,000.

On 1/1/21, Sports held patents that were undervalued by $91,000. The patents have a remaining life of 15 years. Additionally, Sports had a customer list that was not recorded on the books of Sports. The customer list had a value of $47,000 & a remaining life of 5 years. Any remaining excess of acquisition date fair value was assigned to goodwill. No goodwill has bene impaired during 2021 & 2022.

Intra-entity inventory sales from Dynamic to Sports are listed below:

Year	Sales of Merchandise to Sports	Gross Profit Ratio on Sales to Sports	Ending Inventory Balance (at sales price)
2021	$150,000	20%	$50,000
2022	$158,000	15%	$40,000

On 1/1/22, Sports sold equipment to Dynamic for $43,000. Sports originally purchased the equipment for $60,000 & the equipment had a net book value of $30,000 on 1/1/22. The equipment has a remaining useful life of 5 years. Both Dynamic & Sports use straight-line depreciation with no residual value. Sports recorded the gain on the equipment sales to Other Income & Deductions.

Dynamic uses the equity method to account for its investment in Sports.

The trial balances of Dynamic & Sports on 12/31/22 are attached below:

Trial Balance

12/31/22

Debit / (Credit)

	Dynamic Golf	Sports Unlimited
Cash & Receivable	250,850	148,000
Inventory	233,000	129,000
Investment in Sports	409,750	0
Buildings, net	308,000	202,000
Equipment, net	220,000	86,000
Patents	0	20,000
Customer List	0	0
Goodwill	0	0
Liabilities	(390,000)	(160,000)
Common Stock	(300,000)	(100,000)
Retained Earnings	(695,000)	(280,000)
NCI Interest	0	0
Dividends	45,000	15,000
Sales	(700,000)	(335,000)
Cost of Goods Sold	460,000	230,000
Operating Expense	188,000	70,000
Other Income & Deductions	0	(25,000)
Equity Earnings in Sports	(29,600)	0
Totals	0	0

REQUIREMENTS:

1 - Create an Acquisition Date Fair-Value Allocation Schedule for 1/1/21

2 - Create Consolidation Journal Entries for December 2022

3 - Create a Consolidated Worksheet for the Year End 12/31/22.

4 - Create Income distribution schedules for 2022 for the parent & subsidiary

5 - Create Consolidated Financial Statements - In good form (income statement, statement of stockholder equity & balance sheet)