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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

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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 $170,000 and retained earnings of $400,000. At the acquisition date. $64,500 of the fair-value price was attributed to undervalued land while $72,000 was assigned to undervalued equipment having a 10-year remaining life. The $63.500 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 Glant $11:100 Small declared and paid dividends in the same period. Credits are indicated by parentheses Giant Sall 5(1,298,200) 5 (446,500) 618,000 113,50 200.000 172,000 Revenues Cost of goods sold Depreciation expense Equity in incont of Small et incon Retained earnings, 1/5/21 Net Income (above) Dividends declared Metained nines, 12/31/21 Current at Investment is all Land buildings (net Lot (net) Gooi Total asets Latitis stock darin (bove) Total liabilities and cities 5 (621,000) $ (156,000) 5(1,250,00) 5 (712,000) (621,000) {156,000) 280.000 90.00 5.61.621,000) (778,000) $ 329, 5 344, 1.112.00 447,600 253,000 398,00 439. 50,000 353,000 $ 2,79.000 5 (938,000) S (441,000) (250,000) (170.000) (3.621.000) (78000) 302.799,000) (1,3,000) a. How was the $548,800 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 Glant 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 impared in 2021 what journal entity would Giant make to record such impairment

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