Giant acquired all of Smalls 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, $74,400 of the fair value price was attributed to undervalued land while $65,000 was assigned to undervalued equipment having a 10 year remaining life The $60,600 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 $14,500 Small declared and paid dividends in the same period Credits are indicated by parentheses Giant Small Revenues $ (1,261,000 ) $ (505,500 ) Cost of goods sold 605,000 122,500 Depreciation expense 210,500 144,000 Equity in income of Small (232,500 ) 0 Net income $ (678,000 ) $ (239,000 ) Retained earnings, 1 1 21 $ (1,790,000 ) $ (715,000 ) Net income (above) (678,000 ) (239,000 ) Dividends declared 290,000 110,000 Retained earnings, 12 31 21 $ (2,178,000 ) $ (844,000 ) Current assets $ 604,500 $ 385,000 Investment in Small 1,181,500 0 Land 472,000 224,000 Buildings (net) 325,000 494,000 Equipment (net) 735,000 333,000 Goodwill 0 0 Total assets $ 3,318,000 $ 1,436,000 Liabilities $ (890,000 ) $ (422,000 ) Common stock (250,000 ) (170,000 ) Retained earnings(above) (2,178,000 ) (844,000 ) Total liabilities and equities $ (3,318,000 ) $ (1,436,000 ) How was the $232,500 Equity in Income of Small balance computed Determine the totals to be reported by this business combination for the year ending December 31, 2021 Prepare a consolidation worksheet for Giant and Small for the year ending December 31, 2021 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

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Giant acquired all of Smalls common stock on January 1, 2017, in exchange for cash of $770,000. On that day, Small reported common stock of

Giant acquired all of Smalls 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, $74,400 of the fair-value price was attributed to undervalued land while $65,000 was assigned to undervalued equipment having a 10-year remaining life. The $60,600 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 $14,500. Small declared and paid dividends in the same period. Credits are indicated by parentheses.

	Giant			Small
Revenues	$	(1,261,000	)	$	(505,500	)
Cost of goods sold		605,000			122,500
Depreciation expense		210,500			144,000
Equity in income of Small		(232,500	)		0
Net income	$	(678,000	)	$	(239,000	)
Retained earnings, 1/1/21	$	(1,790,000	)	$	(715,000	)
Net income (above)		(678,000	)		(239,000	)
Dividends declared		290,000			110,000
Retained earnings, 12/31/21	$	(2,178,000	)	$	(844,000	)
Current assets	$	604,500		$	385,000
Investment in Small		1,181,500			0
Land		472,000			224,000
Buildings (net)		325,000			494,000
Equipment (net)		735,000			333,000
Goodwill		0			0
Total assets	$	3,318,000		$	1,436,000
Liabilities	$	(890,000	)	$	(422,000	)
Common stock		(250,000	)		(170,000	)
Retained earnings(above)		(2,178,000	)		(844,000	)
Total liabilities and equities	$	(3,318,000	)	$	(1,436,000	)

How was the $232,500 Equity in Income of Small balance computed?
Determine the totals to be reported by this business combination for the year ending December 31, 2021.
Prepare a consolidation worksheet for Giant and Small for the year ending December 31, 2021.
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?