I was able to get $2,887,500 for GOODWILL but over all the balance sheet was off. I would appreciate if I someone could go through point a, b and c

On January 1, 2018, Alan Ltd. acquired 60% of the shares of Bob Inc. by issuing shares valued at $3,000,000. On this date, Bob Inc.'s building and machinery had remaining useful lives of 20 years and 5 years, respectively. Both Alan Ltd. and Bob Inc. use straight-line depreciation. The separate-entity statements of financial position for Alan Ltd. and Bob Inc. just prior to the acquisition are presented below. Statements of Financial Position Alan Ltd. (Carrying Value) Bob Inc. (Carrying Value) (Fair Value) $ $ Noncurrent assets: Land Building Accumulated depreciation Machinery Accumulated depreciation Total noncurrent assets Current assets: Inventories Amounts receivable Cash Total current assets Total assets 2,750,000 (425,000) 2,750,000 (1,400,000) 3,675,000 725,000 $ 700,000 1,300,000 1,500,000 (650,000) 1,300,000 275,000 (850,000) 1,825,000 PAGE 1 450,000 675,000 255,000 1,380,000 5,055,000 375,000 180,000 45,000 600,000 2,425,000 162,500 180,000 45,000 2,862,500 $ 1,875,000 2,205,000 4,080,000 700,000 1,125,000 1,825,000 Shareholders' equity: Common shares $ Retained earnings Total shareholders' equity Noncurrent liabilities: Long-term loans Current liabilities: Accounts payable Total liabilities Total liabilities and shareholders' equity $ 275,000 275,000 975,000 975,000 5,055,000 325,000 600,000 2,425,000 325,000 600,000 $ The separate-entity statements for Alan Ltd. and Bob Inc. at the end of 2018 are presented below. Statements of Financial Position Statements of Comprehensive Income Alan Ltd. Bob Inc. Alan Ltd. $ 25,400,000 420,000 Bob Inc. $ 12,750,000 $ 400,000 $ Sales Dividend income Gain on sale of land Other income 75,000 655,000 1,900,000 (725,000) 2,116,000 (960,000) 65,000 25,885,000 12,825,000 Noncurrent assets: Long-term loan receivable Land Building Accumulated depreciation Machinery Accumulated depreciation Investment in Bob Inc. Total noncurrent assets Current assets: Inventories Amounts receivable Cash Total current assets Total assets 2,975,000 (480,000) 2,925,000 (915,000) 3,000,000 7,905,000 2,986,000 Cost of sales Other operating expenses Interest expense Total expenses Net income and comprehensive income $ 15,240,000 9,059,750 24,000 24,323,750 1,561,250 7,012,500 4,488,750 57,500 11,558,750 1,266,250 1,100,000 583,000 334,000 2,017,000 9,922,000 688,250 166,000 156,000 1,010,250 3,996,250 Statements of Comprehensive Income $ $ 4,875,000 3,266,250 8,141,250 700,000 1,691,250 2,391,250 Alan Ltd. $ 2,205,000 1,561,250 (500,000) 3,266,250 Retained earnings, December 31, 20x1 Net income Dividends declared Retained earnings, December 31, 2018 Shareholders' equity: Common shares Retained earnings Total shareholders' equity Noncurrent liabilities: Long-term loans Current liabilities: Accounts payable Total liabilities Total liabilities and shareholders' equity Bob Inc. s 1,125,000 1,266,250 (700,000) $ 1,691,250 650,000 675,000 1,130,750 1,780,750 9,922,000 930,000 1,605,000 3,996,250 $ $ PAGE 2 During 2018 Alan Ltd. and Bob Inc. had the following transactions between . During 2018, Bob Inc. sold $4,750,000 of goods to Alan Ltd. At the end of 2018, During 2018, Alan Ltd. sold $2,000,000 of goods to Bob Inc. At the end of 2018, There was no impairment of goodwill for 2018. The separate entity statements for Alan Ltd. and Bob at the end of 2018 are presented below. Statements of Financial Position Statements of Comprehensive Income Alan Ltd. Bob Inc. Bob Inc. Alan Ltd. $ 26,750,000 360,000 $ 11,000,000 $ $ Sales Dividend income Gain on sale of machine Other income 655,000 1,900,000 (825,000) 2,450,000 (1,020,000) 120,000 27,230,000 11,000,000 Noncurrent assets: Long-term loan receivable Land Building Accumulated depreciation Machinery Accumulated depreciation Investment in Bob Inc. Total noncurrent assets Current assets: Inventories Amounts receivable Cash Total current assets Total assets 325,000 3,800,000 (665,000) 2,500,000 (1,015,000) 3,000,000 7,945,000 6,050,000 4,950,000 180,000 3,160,000 Cost of sales Other operating expenses Interest expense Loss on sale of machine Total expenses Net income and comprehensive income 16,050,000 9,530,500 200,000 100,000 25,880,500 1,349,500 11,180.000 (180,000) $ 1,350,000 626,000 295,000 2,271,000 10,216,000 584,250 184,000 143,000 911,250 4,071,250 Statements of Comprehensive Income For the year ended December 31, 2019 $ $ 4,875,000 3,875,750 8,750,750 1,000,000 911,250 1,911,250 $ Shareholders' equity: Common shares Retained earnings Total shareholders' equity Noncurrent liabilities: Long-term loans Current liabilities: Accounts payable Total liabilities Total liabilities and shareholders' equity Alan Ltd. Retained earnings, December 31, 20x1 $ 3,266,250 Net income 1,349,500 Dividends declared (740,000) Retained earnings, December 31, 2018 3,875,750 Bob Inc. 1,691,250 (180,000) (600,000) 911,250 520,000 1,200,000 945,250 1,465,250 10,216,000 960,000 2,160,000 4,071,250 PAGE 3 Additional information for 2019: During 2019, Alan Ltd. purchased $3,000,000 of goods from Bob Inc. At the end of the During December 2019, Bob Inc. purchased $1,000,000 of goods from Alan Ltd. At the Both Alan Ltd. and Bob Inc.'s gross margins for these goods were unchanged from At the end of 2019, Bob Inc. did not pay the interest due on the loan from Alan Ltd. Required: a) Prepare a set of consolidated statement of financial position at the acquisition date. b) Prepare a set of consolidated financial statements for 2019. c) Calculate Alan Ltd.'s consolidated retained earnings for 2019. Do not prepare On January 1, 2018, Alan Ltd. acquired 60% of the shares of Bob Inc. by issuing shares valued at $3,000,000. On this date, Bob Inc.'s building and machinery had remaining useful lives of 20 years and 5 years, respectively. Both Alan Ltd. and Bob Inc. use straight-line depreciation. The separate-entity statements of financial position for Alan Ltd. and Bob Inc. just prior to the acquisition are presented below. Statements of Financial Position Alan Ltd. (Carrying Value) Bob Inc. (Carrying Value) (Fair Value) $ $ Noncurrent assets: Land Building Accumulated depreciation Machinery Accumulated depreciation Total noncurrent assets Current assets: Inventories Amounts receivable Cash Total current assets Total assets 2,750,000 (425,000) 2,750,000 (1,400,000) 3,675,000 725,000 $ 700,000 1,300,000 1,500,000 (650,000) 1,300,000 275,000 (850,000) 1,825,000 PAGE 1 450,000 675,000 255,000 1,380,000 5,055,000 375,000 180,000 45,000 600,000 2,425,000 162,500 180,000 45,000 2,862,500 $ 1,875,000 2,205,000 4,080,000 700,000 1,125,000 1,825,000 Shareholders' equity: Common shares $ Retained earnings Total shareholders' equity Noncurrent liabilities: Long-term loans Current liabilities: Accounts payable Total liabilities Total liabilities and shareholders' equity $ 275,000 275,000 975,000 975,000 5,055,000 325,000 600,000 2,425,000 325,000 600,000 $ The separate-entity statements for Alan Ltd. and Bob Inc. at the end of 2018 are presented below. Statements of Financial Position Statements of Comprehensive Income Alan Ltd. Bob Inc. Alan Ltd. $ 25,400,000 420,000 Bob Inc. $ 12,750,000 $ 400,000 $ Sales Dividend income Gain on sale of land Other income 75,000 655,000 1,900,000 (725,000) 2,116,000 (960,000) 65,000 25,885,000 12,825,000 Noncurrent assets: Long-term loan receivable Land Building Accumulated depreciation Machinery Accumulated depreciation Investment in Bob Inc. Total noncurrent assets Current assets: Inventories Amounts receivable Cash Total current assets Total assets 2,975,000 (480,000) 2,925,000 (915,000) 3,000,000 7,905,000 2,986,000 Cost of sales Other operating expenses Interest expense Total expenses Net income and comprehensive income $ 15,240,000 9,059,750 24,000 24,323,750 1,561,250 7,012,500 4,488,750 57,500 11,558,750 1,266,250 1,100,000 583,000 334,000 2,017,000 9,922,000 688,250 166,000 156,000 1,010,250 3,996,250 Statements of Comprehensive Income $ $ 4,875,000 3,266,250 8,141,250 700,000 1,691,250 2,391,250 Alan Ltd. $ 2,205,000 1,561,250 (500,000) 3,266,250 Retained earnings, December 31, 20x1 Net income Dividends declared Retained earnings, December 31, 2018 Shareholders' equity: Common shares Retained earnings Total shareholders' equity Noncurrent liabilities: Long-term loans Current liabilities: Accounts payable Total liabilities Total liabilities and shareholders' equity Bob Inc. s 1,125,000 1,266,250 (700,000) $ 1,691,250 650,000 675,000 1,130,750 1,780,750 9,922,000 930,000 1,605,000 3,996,250 $ $ PAGE 2 During 2018 Alan Ltd. and Bob Inc. had the following transactions between . During 2018, Bob Inc. sold $4,750,000 of goods to Alan Ltd. At the end of 2018, During 2018, Alan Ltd. sold $2,000,000 of goods to Bob Inc. At the end of 2018, There was no impairment of goodwill for 2018. The separate entity statements for Alan Ltd. and Bob at the end of 2018 are presented below. Statements of Financial Position Statements of Comprehensive Income Alan Ltd. Bob Inc. Bob Inc. Alan Ltd. $ 26,750,000 360,000 $ 11,000,000 $ $ Sales Dividend income Gain on sale of machine Other income 655,000 1,900,000 (825,000) 2,450,000 (1,020,000) 120,000 27,230,000 11,000,000 Noncurrent assets: Long-term loan receivable Land Building Accumulated depreciation Machinery Accumulated depreciation Investment in Bob Inc. Total noncurrent assets Current assets: Inventories Amounts receivable Cash Total current assets Total assets 325,000 3,800,000 (665,000) 2,500,000 (1,015,000) 3,000,000 7,945,000 6,050,000 4,950,000 180,000 3,160,000 Cost of sales Other operating expenses Interest expense Loss on sale of machine Total expenses Net income and comprehensive income 16,050,000 9,530,500 200,000 100,000 25,880,500 1,349,500 11,180.000 (180,000) $ 1,350,000 626,000 295,000 2,271,000 10,216,000 584,250 184,000 143,000 911,250 4,071,250 Statements of Comprehensive Income For the year ended December 31, 2019 $ $ 4,875,000 3,875,750 8,750,750 1,000,000 911,250 1,911,250 $ Shareholders' equity: Common shares Retained earnings Total shareholders' equity Noncurrent liabilities: Long-term loans Current liabilities: Accounts payable Total liabilities Total liabilities and shareholders' equity Alan Ltd. Retained earnings, December 31, 20x1 $ 3,266,250 Net income 1,349,500 Dividends declared (740,000) Retained earnings, December 31, 2018 3,875,750 Bob Inc. 1,691,250 (180,000) (600,000) 911,250 520,000 1,200,000 945,250 1,465,250 10,216,000 960,000 2,160,000 4,071,250 PAGE 3 Additional information for 2019: During 2019, Alan Ltd. purchased $3,000,000 of goods from Bob Inc. At the end of the During December 2019, Bob Inc. purchased $1,000,000 of goods from Alan Ltd. At the Both Alan Ltd. and Bob Inc.'s gross margins for these goods were unchanged from At the end of 2019, Bob Inc. did not pay the interest due on the loan from Alan Ltd. Required: a) Prepare a set of consolidated statement of financial position at the acquisition date. b) Prepare a set of consolidated financial statements for 2019. c) Calculate Alan Ltd.'s consolidated retained earnings for 2019. Do not prepare