I found this completed on Chegg already - however, I am having an issue with the Excel formulas to make the answers work. I can get the answers if I just do this on paper but am having an issue with Excel. Is anyone good with Excel that can assist?

In this project, you are to provide an analysis of alternative accounting methods for controlling interest investments and subsequent effects on consolidated reporting. The project requires the use of a computer and a spreadsheet software package (e.g., Microsoft Excel, etc.). The use of these tools allows you page 152to assess the sensitivity of alternative accounting methods on consolidated financial reporting without preparing several similar worksheets by hand. Also, by modeling a worksheet process, you can develop a better understanding of accounting for combined reporting entities.

Consolidated Worksheet Preparation

You will be creating and entering formulas to complete four worksheets. The first objective is to demonstrate the effect of different methods of accounting for the investments (equity, initial value, and partial equity) on the parent companys trial balance and on the consolidated worksheet subsequent to acquisition. The second objective is to show the effect on consolidated balances and key financial ratios of recognizing a goodwill impairment loss.

The project requires preparation of the following four separate worksheets:

2. Equity method consolidation worksheet.

3. Initial value method consolidation worksheet.

4. Partial equity method consolidation worksheet.

If your spreadsheet package has multiple worksheet capabilities (e.g., Excel), you can use separate worksheets; otherwise, each of the four worksheets can reside in a separate area of a single spreadsheet.

In formulating your solution, each worksheet should link directly to the first worksheet. Also, feel free to create supplemental schedules to enhance the capabilities of your worksheet.

Project Scenario

Pecos Company acquired 100 percent of Suaros outstanding stock for $1,450,000 cash on January 1, 2017, when Suaro had the following balance sheet:

At the acquisition date, the fair values of each identifiable asset and liability that differed from book value were as follows:

Land	$ 80,000
Brand name	60,000		(indefinite lifeunrecognized on Suaros books)
Software	415,000		(2-year estimated remaining useful life)
In-process R&D	300,000

Additional Information

• Although at acquisition date Pecos expected future benefits from Suaros in-process research and development (R&D), by the end of 2017 it became clear that the research project was a failure with no future economic benefits.

• During 2017, Suaro earns $75,000 and pays no dividends.

• Selected amounts from Pecos and Suaros separate financial statements at December 31, 2018, are presented in the consolidated information worksheet. All consolidated worksheets are to be prepared as of December 31, 2018, two years subsequent to acquisition.

• Pecoss January 1, 2018, Retained Earnings balancebefore any effect from Suaros 2017 incomeis $(930,000) (credit balance).

• Pecos has 500,000 common shares outstanding for EPS calculations and reported $2,943,100 for consolidated assets at the beginning of the period.