Giant acquired all of Smalls common stock on January 1, 2009. Over the next few years, Giant applied the equity method to the recording of this investment. At the date of the original acquisition, $97,500 of the fair-value price was attributed to undervalued land while $78,000 was assigned to equipment having a 10-year life. The remaining $60,200 unallocated portion of the acquisition-date excess fair value over book value was viewed as goodwill.

Following are individual financial statements for the year ending December 31, 2013. On that date, Small owes Giant $14,400. Credits are indicated by parentheses.

	Giant			Small
Revenues	$	(1,151,300	)	$	(506,500	)
Cost of goods sold		556,000			109,500
Depreciation expense		170,500			170,000
Equity in income of Small		(219,200	)		0
Net income	$	(644,000	)	$	(227,000	)
Retained earnings, 1/1/13	$	(1,820,000	)	$	(714,000	)
Net income (above)		(644,000	)		(227,000	)
Dividends paid		300,000			90,000
Retained earnings, 12/31/13	$	(2,164,000	)	$	(851,000	)
Current assets	$	647,300		$	353,000
Investment in Small		1,217,700			0
Land		480,000			191,000
Buildings (net)		305,000			513,000
Equipment (net)		679,000			359,000
Goodwill		0			0
Total assets	$	3,329,000		$	1,416,000
Liabilities	$	(915,000	)	$	(395,000	)
Common stock		(250,000	)		(170,000	)
Retained earnings(above)		(2,164,000	)		(851,000	)
Total liabilities and equities	$	(3,329,000	)	$	(1,416,000	)

A. How was the $219,200 Equity in Income of Small balance computed?

B. Determine the totals reported by this business combination for the year ending December 31, 2013.

C.Prepare a consolidation worksheet for Giant and Small for the year ending Dec 31,2013.

D. if Giant determined that the entire amount of goodwill from its investment in Small was impaired in 2013, what journal entry would Giant pass in its book to record such impairment?