Giant acquired all of Small's common stock on January 1, 2020, in exchange for cash of $770,000. On that day, Small reported common stock of $170,000 and retained earnings of $400,000. At the acquisition date. $75,000 of the fair-value price was attributed to undervalued land while $63,000 was assigned to undervalued equipment having a 10-year remaining life. The $62,000 unallocated portion of the acquisition-date excess fair value over book value was viewed as goodwill. Over the next few years, Giant applied the equity method to the recording of this investment. The following are individual financial statements for the year ending December 31, 2024. On that date, Small owes Giant $10,300. Small declared and paid dividends in the same period. Credits are indicated by parentheses. Accounts Revenues Cost of goods sold t Depreciation expense Equity in income of Small Net incone Retained earnings, 1/1/24 Net income (above) Dividends declared Retained earnings, 12/31/24 Current assets Investment in Small Land Buildings (net) Equipment (net) Goodwill Total assets Liabilities Common stock Retained earnings(above) Total liabilities and equities Required: Giant $ (1,200,300) 573,000 178,000 (157,700) $ (607,000) $ (1,550,000) (607,000) 290,000 $ (1,867,000) $ 342,500 1,097,500 516,000 369,000 720,000 0 $ 3,053,000 $ (936,000) (250,000) (3,867,000) $ (3,053,000) Small $ (493,500) 114,500 215,000 $ (164,000) $ (705,000) (164,000) 110,000 $ (759,000) $332,000 0 250,000 473,000 297,000 $3,352,000 $ (423,000) (170,000) (759,000) $ (1,352,000) 4 < Prev 5 of 5 Next a. How was the $157,700 Equity in Income of Small balance computed? b. Determine the totals to be reported by this business combination for the year ending December 31, 2024. c. Prepare a consolidation worksheet for Glant and Small for the year ending December 31, 2024. d. If Giant determined that the entire amount of goodwill from its investment in Small was impaired in 2024, what journal entry would Glant make to record such impairment? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D How was the $157,700 Equity in Income of Small balance computed? Equity in Income of Small $ Required A Required B > Revenues Cost of goods sold Depreciation expense Income of Small Net income Retained earnings, 1/1/24 Dividends declared Retained earnings, 12/31/24 Current assets Investment in Small Land Building (net) Equipment (net) Goodwill Total assets Liabilities Common stock Retained earnings, 12/31/24 Total liabilities and equity Totals GIANT COMPANY AND SMALL COMPANY Consolidation Worksheet For Year Ending December 31, 2024 Consolidation Entries Accounts Giant Small Debit Credit Consolidated Totals Revenues Cost of goods sold Depreciation expense Equity income of Small Net income $ (1,200,300) $ (493,500) 573,000 114,500. 178,000 215,000 (157,700) 0 $ (607,000) $ (164,000) Retained earning, 1/1/24 $ (1,550,000) S (705,000) Net income (above) Dividends declared (607,000) 290,000 (164,000) 110,000 Retained earnings, 12/31/24 $ (1,867,000) $ (759,000) Current assets Investment in Small $ 342,500 $ 332,000 1,097,500 0 Land Buildings (net) 516,000 250,000 369,000 473,000 Equipment (net) Goodwill Total assets Liabilities Common stock Retained earnings (above) Total liabilities and equity 728,000 297,000 0 0 $ 3,053,000 $ 1,352,000 (936,000) $ (423,000) (250,000) (170,000) (1,867,000) (759,000) $ (3,053,000) $ (1,352,000)| Journal entry worksheet < 1 Record the loss on impairment of goodwill. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal