Giant acquired all of Small's common stock on January 1, 2017, 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, $38,500 of the fair-value price was attributed to undervalued land while $85,000 was assigned to undervalued equipment having a 10-year remaining life. The $76,500 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, 2021. On that date, Small owes Giant $15,100. Small declared and paid dividends in the same period. Credits are indicated by parentheses. Giant Small $(1,185,500) $ (511,000) Revenues Cost of goods sold Depreciation expense Equity in incone of Small Net income Retained earnings, 1/1/21 Net income (above) Dividends declared Retained earnings, 12/31/21 Current assets Investment in Small Land Buildings (net) Equipment (net) Goodwill Total assets Liabilities: Common stock Retained earnings (above) Total liabilities and equities 570,000 192,000 (214,500) 128,000 160,000 0 $ (638,000) $ (223,000) $(1,920,000) $ (687,000) (638,000) (223,000) 300,000 120,000 $(2,258,000) $ (790,000) $ 789,500 $ 358,000 1,117,500 262,000 477,000 311,000 0 $ 3,432,000 $ 1,408,000 510,000 313,000 702,000 $ (924,000) $ (448,000) (250,000) (2,258,000) (170,000) (790,000) $(3,432,000) $(1,408,000) a. How was the $214,500 Equity in Income of Small balance computed? b. Determine the totals to be reported by this business combination for the year ending December 31, 2021. c. Prepare a consolidation worksheet for Giant and Small for the year ending December 31, 2021. + a. How was the $214,500 Equity in Income of Small balance computed? b. Determine the totals to be reported by this business combination for the year ending December 31, 2021. c. Prepare a consolidation worksheet for Giant and Small for the year ending December 31, 2021. d. If Giant determined that the entire amount of goodwill from its investment in Small was impaired in 2021, what journal entry would Giant 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 $214,500 Equity in Income of Small balance computed? Equity in Income of Small $ Required A Required B > ces Required A Required B Required C Required D Determine the totals to be reported by this business combination for the year ending December 31, 2021. (Input as positive values.) Revenues Cost of goods sold Depreciation expense Income of Small Net income Retained earnings, 1/1/21 Dividends declared Retained earnings, 12/31/21 Current assets Investment in Small Land Building (net) Equipment (net) Goodwill Total assets Liabilities Common stock + Retained earnings, 12/31/21 Total liabilities and equity Totals < Required A Required C > GIANT COMPANY AND SMALL COMPANY Consolidation Worksheet For Year Ending December 31, 2021 Consolidation Entries Accounts Giant Small $ (1,185,500) $ (511,000) Revenues Cost of goods sold Depreciation expense Equity income of Small Net income Retained earning, 1/1/21 Net income (above) ces Dividends declared Retained earnings, 12/31/21 570,000 192,000 (214,500) 128,000 160,000 0 $ (638,000) $ (223,000) $ (1,920,000) $ (687,000) (638,000) 300,000 (223,000) 120,000 $ (2,258,000) $ (790,000) Debit Current assets $ 789,500 $ 358,000 Investment in Small 1,117,500 0 Land Buildings (net) Equipment (net) Goodwill Total assets 510,000 262,000 313,000 477,000 702,000 311,000 0 0 $ 3,432,000 $ 1,408,000 Liabilities: Common stock Retained earnings (above). Total liabilities and equity (250,000) (2,258,000) $ (3,432,000) $ (1,408,000) $ (924,000) $ (448,000) (170,000) (790,000) 0 Credit Consolidated Totals Prev 7 of 7 Next ces Required A Required B Required C Required D If Giant determined that the entire amount of goodwill from its investment in Small was impaired in 2021, what journal entry would Giant make to record such impairment? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the loss on impairment of goodwill. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal