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. $90,000 of the fair value price was attributed to undervalued land while $50,000 was assigned to undervalued equipment having a 10 year remaining life. The $60,000 unallocated portion of the acquisition date excess fair value over book value was viewed as goodwill. Over the next few years, Glant 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, Smallowes Giant $10,000. Small declared and paid dividends in the same period. Credits are indicated by parentheses. Small (360,000) 90,000 130,000 Revenues Cost of woods sold Depreciation expense Equity in income of Small Net Inco ined warning, 1/1/21 Net Inco (above) Dividenes declared Ruined earnings, 32/1/21 Current monte Testet all Giant $(1,175,000) 550.000 172.000 (135,000) $ (558,000) 5 $(1,417,000) (5R1,000) 310.000 $(1,695.000) $ 398,00 5 995, 440,000 104,000 14.000 (140,000) 620,000) (140,000) 110.000 (650,000) 3115.000 165,000 119,000 216,000 $3.000 1 140.00 $1,000 3 10 (10.000 00) Mini a. How was the $135.000 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 foumal entry would Glant make to record such impairment? Required A Required B Required C Required D How was the $135,000 Equity in Income of Small balance compu Equity accrual Less: Amortization expense Equity in Income of Small Required 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 all amounts as positive values.) Totals 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 (not) Equipment (net) Goodwill Tot i assets Liabilities Common stock Ratand comings, 12/31/21 Totals and equity Consolidation Entries Accounts + Giant Small Debit Credit Consolidated Totals Revenues Cost of goods sold Depreciation expense Equity income of Small Net income $ (1,175,000) $ (360,000) 550.000 90,000 172,000 130,000 (135,000) 0 s (588,000) $ (140,000) Retained eaming, 1/1/21 Net income (above) Dividends declared Retained earnings, 12/31/21 $ (1,417,000) $ (620,000) (588,000) (140,000) 310,000 110,000 $ (1,695,000) $ (650,000) Current assets Investment in Small Land Buildings (net) Equipment (net) Goodwill $ 398,000 $ 318,000 995,000 0 440,000 165,000 304,000 419,000 648.000 286,000 0 0 $ 2,785,000 $ 1,188,000 Total assets Liabilities Common stock Retained earnings (above) Total liabilities and equity $ (840,000) $ (368,000) (250,000) (170,000) (1.695,000) (650,000) $ (2.785,000) $ (1,188,000) Preu 22 Narl 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