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 Bs voting stock on January 1, 2018 by issuing 10,000 shares of its $10 par value common stock. Company As common stock had a fair value of $14 per share at that time. Company Bs stockholders 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 had been 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.