Giant acquired all of Small's common stock on January 1, 2014, 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 Following are individual financial statements for the year ending December 31, 2018. On that date. Smallowes Giant $14.500. Small declared and paid dividends in the same period. Credits are indicated by parentheses. (505,500) 122.500 Glant 5(1,261,000) 505.000 210,500 (232,500) $ (678,000) $(1,790,000) (678,00) $ $ Revenues Cost of goods sold Depreciation expense Equity in income of Small Net Income Retained earnings, 1/1/18 Net Income (above) Dividends declared Retained earnings, 12/31/18 Current assets Investment in Small Land Buildings (net) Equipment (net) Goodwill Total assets Liabilities Common stock Retained earnings (above) Total abilities and equities (239,000) (715,000) (239,000) 110,000 (144,000) 385.000 $ $(2,178,000) $ 6,500 1,181,500 472.000 325.000 735,000 224.000 494,00 333.000 $ 3,318,000 $ (10,000) (250,000) 2,178,000) $ (3,318.000) $1,436.000 (422,000) (170.000) (844,000) (1.436.000) .. How was the $232.500 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 consolidation worksheet for Giant and Small for the year ending December 31, 2018 d. If 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 answers in the tabs below 42,000 325,000 735,000 224,000 494,000 333,000 Buildings (net) Equipment (net) Goodwill Total assets Llabilities Common stock Retained earnings (above) Total liabilities and equities $ 3,318,000 $ (890,000) (250,000) 2,178,000) $ (3,318,000) $1,436,000 $ (422,000) (170,000) (844,000) $ (1,436,000) .. How was the $232.500 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 consolidation worksheet for Giant and Small for the year ending December 31, 2018. d. If 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 answers in the tabs below. Required A Required B Required C Required D How was the $232,500 Equity in Income of Small balance computed? Equity accrual Less Amortization expense Equity in Income of Smal C Red Required B > Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Determine the totals to be reported by this business combination for the year ending December 31, 2018 Totals 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 Smal Land Building (net) Equipment (net) Goodwill Total assets Common stock Retained earnings 12/31/18 Total e s and equity Required A Required C > Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Prepare a consolidation worksheet for Giant and Small for the year ending December 31, 2018. (For accounts where multiple consolidation entries are required, combine al 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. Negative amounts for the Consolidated Totals column should be entered with a minus sign.) Show less Accounts GIANT COMPANY AND SMALL COMPANY Consolidation Worksheet For Year Ending December 31, 2013 Consolidation Entries Giant Small Debit Credit $ (1 251 000 $ 505 500 122.500 210.500 144 000 32 500 678000 2 39 000 Consolidated Totals Revenues Cost of goods sold Deprecatione pense Equity income of Small Net income Retained earings IS (1.790 000 s Net Income above 78.000 Dividends declared Retained emings 12/31 $ 2.178000) S 200,000 (715.000 230,000) 110 000 344000) Current assets Investment in Smal $ 385.000 504500 1,181,500 472.000 Land 224 000 Bonga) Equipment in Goodwill 333 000 Totales $ 3.718 000 $ 1435 000 Common stock Renderings above) Tot e s and guilty $ 390000 2 .000 050 0001 170 000 2.178.000) 44000) S3318 000) S (1.436.000 Ullmore U TELUIU SUL pollment! Complete this question by entering your answers in the tabs below. Required A Required B Required Required D If Giant determined that the entire amount of goodwill from its investment in Small was impaired in 2018, what journal entry would Glant make to record such impairment? (If no entry is required for a transaction/event, select "No journal entry required in the first account field) View transaction list Journal entry worksheet Record the loss on impairment of goodwill. Transaction General Journal Debt Credit Chewy View general