In 2017 Snoop Corp. Acquired 100% Paren common stocks for $350,000 when the book value of of Paren net assets was $300,000 (CS $200,000 and RE $100,000). At the date of combination all assets and liabilities fair value was equal the book value except equipment the fair value was $35,000 above the book value and the remaining useful life is 7 years. Any additional differences is attributed to good will. Paren company reported net income $80,000 in 2017 and $70,000 in 2018 and paid dividends $30,000 for each year. No impairment loss in 2017 while the impairment loss in 2018 was $4,000. The section of assets in statement of financial position on Dec.31, 2018 for both companies were:

Snoop Paren Elimination Consolidated

Dr Cr Statement

Cash $120,000 $50,000

A/R $80,000 $40,000

Land $100,000 $70,000

Equipment $250,000 $100,000

Acc. Dep. ($50,000) ($20,000)

Investment in S

Good Will

Additional Information

1. During 2017 and 2018 no additional commons stocks were issued

2. During 2018 Snoop owned Paren $10,000, the balance of debt is still unpaid on Dec.31, 2018

Required:

1. Prepare the required entries in Snoop books related to their investment in Paren on Dec.31, 2018 using Fully Adjusted Equity Method

2. Compute the ending balance of investment in S (Paren ) and Goodwill, both companies and consolidated at Dec.31, 2018

3. Prepare the required elimination entries in 2018

4. Complete the section of assets in consolidated balance sheet showed above