Giant acquired all of Small's common stock on January 1, 2014 in exchange for cash of 5770.000. On that day, Small reported common stock of $170.000 and retained earnings of $400,000. At the acquisition date $65.200 of the fair value price was attributed to undervalued land while $61,000 was assigned to undervalued equipment having a 10 year remaining life. The $73,800 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 Following are individual financial statements for the year ending December 31 2018 On that date, Smallowes Giant $12.200 Small declared and paid dividends in the same period Credits are indicated by parentheses Cost of gods sold Depreciation expense touity in Income of Small Retained earnings, 1/1/18 5 (1.366.600) 5 (639,500) $15.00 92,500 212,500 200.000 340.) $ 60,00) 3 (147.ee 3 (1,670,00) 5 Teas, 800) (600.000) (147,00) 120.000 100.000 3 (1,900,000 $ 32,00) 5 478,5 2850 506, 215. 0.000 5 18,000 1, 319, Dividends decare Retained earnings, 12/11/18 vesteent in 1.071, Equipment (net) 11.127,000 1,317,000 250.000) (170,000 Toral l es cities How was the $100 900 Equity in Income of Small balance computed? b. Determine the totals to be reported by this business combination for the year ending December 31, 2018 c. Prepare a consondation worksheet for Grant and Small for the year ending December 11, 2018 d. Giant determined that the entire amount of goodwill from its investment in Small was impaired in 2018, what journal entry would Giant make to record such impairment? Complete this question by entering your Determine the totals to be reported by this business combination for the year ending Decem Totals 1,806,100 707,500 418 600 10 1680,000 1620.000 | 320.000 $ Revenues Cost of goods sold Depreciation expense Income of Small Net income Retained earnings. 1/1/18 Dividends declared Retained earnings 12/31/18 Current assets Investment in Small Land Building (net) Equipment (net) Goodwill Total assets Liabilities Common stock Retained earnings, 12/31/18 Total liabilities and equity 1.980,000 763500 1721,000 878.000 1 030.000 She Accounts Consolidated Credit GIANT COMPANY AND SMALL COMPANY Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Giant Small Debit S (1.366.6067 $ (439,500) 615,000 92,500 212,500 200.000 (140,900) $ (680.000) S (147,000) Totals Revenues Cost of goods sold Depreciation expense Equity income of Small Net income 5 Retained earnings 11 Net income (above) Dividends declared Retained earnings 12/31 5 (1.620.000) (680,000) 320,000 (1.980.000) (685,000) (147.000) 100.000 732.000) S S 5 285000 Current assets Investment in Small Land Buildings (net) Equipment (net) Goodwill Total assets 478,500 1.071.500 506,000 360.000 711,000 215,000 518,000 319,000 5 3.127,000 5 1,337,000 Llabilities Common stock Retained earnings (above) Total liabilities and equity 5 (897000) (250.000) (1.980.000) S 3 127.000) $ (435,000) (170,000) (732 000) 5 (1337.000) 0 05