On January $1,2018,$ Plymouth Corp. purchased $100\mathrm{.}00\%$ of the net assets of Shelby Corp. for $$226,800.$ The write$-$up of the Buildings and Equipment from

book value to fair market value amounted to $50\mathrm{.}00\%$ of the total differential. The write$-$up of the Land from book value to fair market value amounted to

$20\mathrm{.}00\%$ of the total differential. The remaining $30\mathrm{.}00\%$ of the total differential is attributable to Goodwill. The remaining useful life of the Buildings and

Equipment is assumed to be $10$ years. Goodwill is impaired at the end of $2018$ and $2019$ and must be written down, each year, by $10\mathrm{.}00\%$ of its original

$($initial$)$ value. The company uses the equity method approach to account for the goodwill impairment.

A complete set of financial statements for fiscal years $2018$ and $2019$ for Plymouth Corp. is located in Exhibit $1.$ A complete set of financial statements for

fiscal years $2018$ and $2019$ for Shelby Corp. is located in Exhibit $2.$

Based on the purchase price, calculate the total differential $($in dollars$),$ as well as the differential $($in dollars$)$ applied to: i$)$ Buildings and Equipment, ii$)$

Land and iii$)$ Goodwill. $($SHOW ALL WORK IN THE CALCULATION$).$

For fiscal year $2018,$ provide ALL journal entries $($and t$-$accounts$)$ used by the parent company to account for its investment in the subsidiary using the

equity method.

For fiscal year $2018$ provide ALL eliminating entries $($and t$-$accounts$)$ necessary to create consolidated financial statements.

For fiscal year $2018,$ create the consolidated financial statements using the $3-$step worksheet.

For fiscal year $2019,$ provide ALL journal entries $($and t$-$accounts$)$ used by the parent company to account for its investment in the subsidiary using the

equity method.

For fiscal year $2019$ provide ALL eliminating entries $($and t$-$accounts$)$ necessary to create consolidated financial statements.

For fiscal year $2019,$ create the consolidated financial statements using the $3-$step worksheet.