Instructions: Prepare a consolidated worksheet to arrive at a consolidated balance sheet totals as of the acquisition by using the 3 different methods: Equity, Initial Value, and Partial-Equity Method. Use the Excel template provided (tab 2, 3, 4- Problem 5 Equity, Problem 5 Initial Value, Problem 5 Partial-Equity). Note that the problem has also been posted on the Excel template for ease of transferring information (hint: many of the line items are the same for each of the 3 methods). Prepare in Excel.

Company A acquired 100% of Company B's voting stock on January 1, 2018, by issuing 10,000 shares of its $10 par value common stock. Company A's common stock had a fair value of $14 per share at that time. Company B's stockholder's equity was $105,000 at date of acquisition. The trademark was undervalued by $10,000. It has an indefinite life. Equipment (with a 5-year life) was undervalued by $5,000. A customer list that hadbeen created internally had an estimated useful life of 20 years was valued at $20,000. Following are the financial statements for the two companies for the year ending December 31, 2018. Credit balances are indicated by (parentheses). Complete the trial balance of A Company (calculate income of sub and investment in sub) by using the three different investing accounting methods; Equity, Initial Value, and Partial Equity (use individual tabs following problem) Then, continue by preparing a consolidated worksheet for year ended Dec. 31, 2018. Include your consolidation and elimination entries in journal form with the exam.

A Company B CompanyRevenues (485,000) (190,000)COGS 160,000 70,000 Depreciation Exp 130,000 52,000 - Net Income (68,000) R/E, 1/1 (609,000) (40,000)Net income (above) (68,000)Dividends paid 175,500 40,000 R/E, 12/31 (68,000) Cash 268,000 17,000 Trademark 427,500 58,000 Buildings & Eqp (net) 713,000 161,000 Total Assets 236,000 Liabilities (190,000) (103,000)Common Stock (600,000) (60,000)APIC (90,000) (5,000)R/E (above) (68,000) Total Liabilities & Equity (236,000)