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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, $46,500 of the fair-value price was attributed to undervalued land while $86,000 was assigned to undervalued equipment having a 10-year remaining life. The $67,500 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 Following are individual financial statements for the year ending December 31, 2018. On that date, Smallowes Giant $14,900. Small declared and paid dividends in the same period. Credits are indicated by parentheses. $ Small (488,000) 135,000 131,000 S $ Giant $(1, 239, 100) 642,000 213,500 (213,400) $ (597,000) $(1,260,000) (597,000) 310,000 $11,547,000) $ 166,000 1,169,000 405,000 264,000 651,000 (222,000) (710,000) (222,000) 90,000 (842,000) 331,000 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 liabilities and equities $ $ 227,000 490,000 363.000 $ 2,655,000 5 1,411,000 $ (858,000) $ (399,000) (250,000) (170,000) (1,547,000). (842,000) $(2,655,000) $(1,411,000) a. How was the $213,400 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. a. I 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 $213,400 Equity in Income of Small balance computed? Equity accrual Less: Amortization expense Equity in Income of Small S A Required 8 >

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