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: ITEM MORTAR GRANITE $ 25,000 55.000 100,000 70,000 150,000 CASH Accounts Receivable Inventory Land Building & Equipment Investment in Salt Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Mortgages Payable Common Stock Retained Earnings Sales Income Sale Company $ 38,000 50.000 340,000 80,000 500,000 202,000 500,000 25,000 75,000 50,000 250,000 15,000 75,000 20,000 $155.000 170.000 200,000 300,000 290.000 700,000 45,000 $ 75,000 35,000 100,000 50,000 100,000 400 000 Totals $1.860,000 $1,860,000 $760,000 $760,000 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 2020. Present entries on page 14. [2] Complete the three-part consolidation worksheet provided. beri, 2000 Equity Method Worksheet for consolidated Financal Statement e 100.000 .000 CO 250.00 3. (175.000 49, 0 00051 CODEORD 200) LISCO of IN GOD RETAINED EARNING RETAINED EARNINGS, 1/1/ NET INCOME DECLARED DIVIDEND RETAINED EARNINGS, 12/31/ 100. 23 30 3153 60.000 BALANCE SHEET 200 ACCOUNTS RECEIVABLE 110,COU BUILDING EQUIPMENT ACCUMULATED DEPRECATION 500,000 LETIT 20 2,000 15600 13,10 OD VLT 19 XD 29.900 12833 | 16000 215500 125.00 11501 1 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: ITEM MORTAR GRANITE $ 25,000 55.000 100,000 70,000 150,000 CASH Accounts Receivable Inventory Land Building & Equipment Investment in Salt Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Mortgages Payable Common Stock Retained Earnings Sales Income Sale Company $ 38,000 50.000 340,000 80,000 500,000 202,000 500,000 25,000 75,000 50,000 250,000 15,000 75,000 20,000 $155.000 170.000 200,000 300,000 290.000 700,000 45,000 $ 75,000 35,000 100,000 50,000 100,000 400 000 Totals $1.860,000 $1,860,000 $760,000 $760,000 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 2020. Present entries on page 14. [2] Complete the three-part consolidation worksheet provided. beri, 2000 Equity Method Worksheet for consolidated Financal Statement e 100.000 .000 CO 250.00 3. (175.000 49, 0 00051 CODEORD 200) LISCO of IN GOD RETAINED EARNING RETAINED EARNINGS, 1/1/ NET INCOME DECLARED DIVIDEND RETAINED EARNINGS, 12/31/ 100. 23 30 3153 60.000 BALANCE SHEET 200 ACCOUNTS RECEIVABLE 110,COU BUILDING EQUIPMENT ACCUMULATED DEPRECATION 500,000 LETIT 20 2,000 15600 13,10 OD VLT 19 XD 29.900 12833 | 16000 215500 125.00 11501 1
