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Glant 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

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Glant 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, Glant 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 Glant $14.500 Small declared and paid dividends in the same period. Credits are indicated by parentheses Giant Small Revenues $ (1,261,600) $ (585,500) Cost of goods sold 605,000 122,500 Depreciation expense 210,500 144,00 Equity in incone of Small (232.500) Net income $ (678,eee) $ (239, eee) Retained earnings, 1/1/18 $ (1,790, eee) $ (715, eee) Net Income (above) (678,000) (239,000) Dividends declared 290,000 110,000 Retained earnings, 12/31/18 $(2,178,000) $ (844, eee) Current assets 604,500 385,000 Investment in Swall 1,181,500 Land 472,000 224,000 Buildings (net) 325,000 494,000 Equipment (net) 735,000 333,000 Goodwill 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) $ $ a. 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 Glant 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 Glant make to record such impairment

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