EXCEL CASE CPA skills On January 1, 2017, James Company purchased 100 percent of the outstanding voting stock of Nolan, Inc., for $1,000,000 in cash and other consideration. At the purchase date, Nolan had common stock of $500,000 and retained earnings of $185,000. James attributed the excess of acquisition-date fair value over Nolan's book value to a trade name with an estimated 25-year remaining useful life. James uses the equity method to account for its investment in Nolan During the next two years, Nolan reported the following Inventory Transfers to Dividends Income Declared James at Transfer Price $190,000 2017 $78,000 $25,000 27,000 210,000 2018 85,000 Nolan sells inventory to James after a markup based a gross profit rate. At the end of 2017 and 2018, 30 percent of the current year purchases remain in James's inventory Required Page 259 Create an Excel spreadsheet that computes the following: 1. Equity method balance in James' Investment in Nolan, Inc., account as of December 31, 2018. 2. Worksheet adjustments for the December 31, 2018, consolidation of James and Nolan Formulate your solution so that Nolan's gross profit rate on sales to James is treated as a variable. EXCEL CASE CPA skills On January 1, 2017, James Company purchased 100 percent of the outstanding voting stock of Nolan, Inc., for $1,000,000 in cash and other consideration. At the purchase date, Nolan had common stock of $500,000 and retained earnings of $185,000. James attributed the excess of acquisition-date fair value over Nolan's book value to a trade name with an estimated 25-year remaining useful life. James uses the equity method to account for its investment in Nolan During the next two years, Nolan reported the following Inventory Transfers to Dividends Income Declared James at Transfer Price $190,000 2017 $78,000 $25,000 27,000 210,000 2018 85,000 Nolan sells inventory to James after a markup based a gross profit rate. At the end of 2017 and 2018, 30 percent of the current year purchases remain in James's inventory Required Page 259 Create an Excel spreadsheet that computes the following: 1. Equity method balance in James' Investment in Nolan, Inc., account as of December 31, 2018. 2. Worksheet adjustments for the December 31, 2018, consolidation of James and Nolan Formulate your solution so that Nolan's gross profit rate on sales to James is treated as a variable