Mortar Corporation acquired 80 percent ownership of Granite Salt Company on January 1, 2020 for $173,000. At that date, the fair value of the noncontrolling interest was $43,250. The trial balances for the two companies on December 31, 2020, included the following amounts: MORTAR GRANITE ITEM $ 25,000 55,000 100,000 70,000 150,000 $38,000 50,000 340,000 80,000 500,000 202,000 500,000 25,000 75,000 50,000 CASH Accounts Receivable Inventory Land Building & Equipment Investment in Salt Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared 250,000 15,000 75,000 20,000 $75,000 35,000 100,000 50,000 100,000 Accumulated Depreciation Accounts Payable Mortgages Payable Common Stock Retained Earnings $155,000 170,000 200,000 300,000 290,000 700,000 45,000 400 000 Sales Income Sale Company $760,000 S1,860,000 $760,000 $1.860,000 Totals On January 1, 2020, Granite reported net assets with a book value of $150,000 and a fair value of $191,250. Accumulated depreciation on Buildings and Equipment was $60,000 on the acquisition date. Sale's depreciable assets had an estimated economic life of 11 years on the date of combination. Mortar used the equity method in accounting for its investment in Granite. Detailed analysis of receivables and payables showed the Granite owed Mortar $16,000 on December 31, 2020. REQUIRED [1] Present all consolidation entries needed to prepare a full set of consolidated financial statement for Present entries on page 14. tY Ay last 2020. [2] Complete the three-part consolidation worksheet provided. Mortar Corporation acquired 80 percent ownership of Granite Salt Company on January 1, 2020 for $173,000. At that date, the fair value of the noncontrolling interest was $43,250. The trial balances for the two companies on December 31, 2020, included the following amounts: MORTAR GRANITE ITEM $ 25,000 55,000 100,000 70,000 150,000 $38,000 50,000 340,000 80,000 500,000 202,000 500,000 25,000 75,000 50,000 CASH Accounts Receivable Inventory Land Building & Equipment Investment in Salt Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared 250,000 15,000 75,000 20,000 $75,000 35,000 100,000 50,000 100,000 Accumulated Depreciation Accounts Payable Mortgages Payable Common Stock Retained Earnings $155,000 170,000 200,000 300,000 290,000 700,000 45,000 400 000 Sales Income Sale Company $760,000 S1,860,000 $760,000 $1.860,000 Totals On January 1, 2020, Granite reported net assets with a book value of $150,000 and a fair value of $191,250. Accumulated depreciation on Buildings and Equipment was $60,000 on the acquisition date. Sale's depreciable assets had an estimated economic life of 11 years on the date of combination. Mortar used the equity method in accounting for its investment in Granite. Detailed analysis of receivables and payables showed the Granite owed Mortar $16,000 on December 31, 2020. REQUIRED [1] Present all consolidation entries needed to prepare a full set of consolidated financial statement for Present entries on page 14. tY Ay last 2020. [2] Complete the three-part consolidation worksheet provided
