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, $32,500 of the fair-value price was attributed to undervalued land while $95,500 was assigned to undervalued equipment having a 10-year remaining life. The $72,000 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, 2021. On that date, Small owes Giant $11.900. Small declared and paid dividends in the same period. Credits are indicated by parentheses. Revenues Cost of goods sold reciation expense Equity in income 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 Giant Small $ (1,183,550) $ (462,500) 583,000 98,500 187,000 148,000 (206,450) 0 $ (620,000) $ (216,000) $(1,720,000) $ (642,000) (620,000) (216,000) 310,000 120,000 $ (2,030,000) $ (738,000) $ 439,750 $ 334,000 1,060, 250 0 526,000 260,000 390,000 432,000 739,000 294,000 $ 3,155,000 $ 1,320,000 $ (875,000) $ (412,000) (250,000) (170,000) (2,030,000) (738,000) $ (3,155,000) $ (1,320,000) Prepare a consolidation worksheet for Giant and Small for the year ending December 31, 2021. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Input all amounts as positive values.) Show less GIANT COMPANY AND SMALL COMPANY Consolidation Worksheet For Year Ending December 31, 2021 Consolidation Entries Accounts Giant Small Debit Credit Consolidated Totals (1,646,050) Revenues 681.500 Cost of goods sold Depreciation expense Equity income of Small Net income $ (1,183,550 $ (462,500) 583.000 98,500 187,000 148,000 (206,450) 0 $ (620,000) $ (216,000) 9,550 344 550 (206,450) $ 620,000 Retained earning, 1/1/21 $ (642.000) 642 000 (1.720,000) Net income (above) Dividends declared $ (1,720,000) (620,000) 310,000 (216,000) 120,000 (620,000 310,000 120,000 $ 1$ Retained earnings, 12/31/21 (2,030,000) $ (738,000) $ (2.768 000) X Current assets $ 439.750 $ 11 9001$ 761.850 Investment in Small 940.250 X 334,000 0 260.000 432 000 120.000 32,500 1,060,250 526,000 390,000 739,000 Land 818 500 822.000 Buildings (net) Equipment (net) Goodwill OOOOOOO 294,000 47 750 X 95.500 X 72.000 0 0 1,080.750 72,000 $ 3,555.100 Total assets $ 3 155,000 $ 1,320,000 11,900 170,000 Liabilities Common stock Retained earnings (above) Total liabilities and equity $ (875,000) (250,000) (2,030,000) $ (3.155,000) $ (412,000) (170,000) (738,000) $ (1,320,000) K1,275,100) (250.000) (2.768.000) 947.000 1,119.900 $ 3.555.100 TUTTI