I.The Investor acquired 75% of Investee on January 1, 2019 for $103,500. At acquisition the fair value of the noncontrolling interest was $34,500. Trial Balances for the two entities at December 31, 2019 are:

InvestorInvestee

Debit

Credit

Debit

Credit

Cash

68,500

32,000

Accounts Receivable

85,000

14,000

Inventory

97,000

24,000

Land

42,875

25,000

Buildings & Equipment

350,000

150,000

Investment in Subsidary

114,000

Cost of Goods Sold

145,000

114,000

Wage Expense

35,000

20,000

Depreciation Expense

25,000

10,000

Interest Expense

12,000

4,000

Other Expense

23,000

16,000

Dividends Declared

30,000

20,000

Accumulated Depreciation

170,000

50,000

Accounts Payable

51,000

15,000

Wages Payable

14,000

6,000

Notes Payable

150,000

50,000

Common Stock

200,000

60,000

Retained Earnings

126,875

48,000

Sales

290,000

200,000

Income from Subsidary

25,500

Total

1,027,375

1,027,375

429,000

429,000

The book value of the Investee's assets are equal to the fair value except for

Building & Equipment which are worth $20,000 more. Building and Equipment have 10 years of remaining life at time of acquisition.

Required:

1.Allocation of Acquisition Value

2.Equity entries for 2019.

3.Worksheet entries for the 2019 year end consolidation.

I. The Investor acquired 75% of Investee on January 1, 2019 for $103,500. At acquisition the fair value ofthe noncontrolling interest was $34,500. Trial Balances for the two entities at December 31, 2019 are: Investor Investee Debit Credit Debit Credit Cash 58,500 32,000 Accounts Receivable 85,000 14,000 Inventory 97,000 24,000 Land 42,875 25,000 Buildings 8!. Equipment 350,000 150,000 Investment in Subsidary 114,000 Cost of Goods Sold 145,000 114,000 Wage Expense 35,000 20,000 Depreciation Expense 25,000 10,000 Interest Expense 12,000 4,000 Other Expense 23,000 16,000 Dividends Declared 30,000 20,000 Accumulated Depreciation 170,000 50,000 Accounts Payable 51,000 15,000 Wages Payable 14,000 6,000 Notes Payable 150,000 50,000 Common Stock 200,000 60,000 Retained Earnings 126,875 48,000 Sales 290,000 200,000 Income from Subsidary 25,500 Total 1,027,375 1,027,375 429,000 429,000 The book value of the Investee's assets are equal to the fair value except for Building & Equipment which are worth $20,000 more. Building and Equipment have 10 years of remaining life at time of acquisition. Required: 1. Allocation of Acquisition Value 2. Equity entries for 2019. 3. Worksheet entries for the 2019 year and consolidation