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, $$34,500$ of the fair$-$value price was attributed

to undervalued land while $$99,000$ was assigned to undervalued equipment having a $10-$year remaining life. The $$66,500$ 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 $31,2024.$ On that date. Small owes Giant $$14,800.$

Small declared and paid dividends in the same period. Credits are indicated by parentheses.

Requlred:

How was the $$162,100$ 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 Giant 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

Giant make to record such impairment?

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Required D

How was the $$162,100$ Equity in Income of Small balance computed?