On January $1,2023,$ Mona, Incorporated, acquired $90$ percent of Lisa Company$$s common stock as well as $70$ percent of its preferred shares. Mona paid $$77,000$ in cash for the preferred stock, with a call value of $110$ percent of the $$50$ per share par value. The remaining $30$ percent of the preferred shares traded at a $$46,000$ fair value. Mona paid $$589,500$ for the common stock. At the acquisition date, the noncontrolling interest in the common stock had a fair value of $$65,500.$ The excess fair value over Lisa$$s book value was attributed to franchise contracts of $$52,000.$ This intangible asset is being amortized over a $40-$year period. Lisa pays all preferred stock dividends $($a total of $$20,000$ per year$)$ on an annual basis. During $2023,$ Lisa$$s book value increased by $$122,000.$

On January $2,2023,$ Mona acquired one$-$half of Lisa's outstanding bonds payable to reduce the business combination's debt position. Lisa's bonds had a face value of $$100,000$ and paid cash interest of $6$ percent per year. These bonds had been issued to the public to yield $10$ percent. Interest is paid each December $31.$ On January $2,2023,$ these bonds had a total $$87,320$ carrying amount. Mona paid $$51,773,$ indicating an effective interest rate of $5$ percent.

On January $3,2023,$ Mona sold Lisa fixed assets that had originally cost $$112,000$ but had accumulated depreciation of $$80,000$ when transferred. The transfer was made at a price of $$144,000.$ These assets were estimated to have a remaining useful life of $10$ years.

The individual financial statements for these two companies for the year ending December $31,2024,$ are as follows:

Accounts Mona, Incorporated Lisa Company

Sales and other revenues $ $(524,000)$ $ $(224,000)$

Expenses $232,000132,000$

Dividend income$$Lisa common stock $(19,800)0$

Dividend income$$Lisa preferred stock $(14,000)0$

Net income $ $(325,800)$ $ $(92,000)$

Retained earnings, $1/1/24$ $ $(712,000)$ $ $(524,000)$

Net income $($above$)(325,800)(92,000)$

Dividends declared$$common stock $104,80022,000$

Dividends declared$$preferred stock $020,000$

Retained earnings, $12/31/24$ $ $(933,000)$ $ $(574,000)$

Current assets $ $142,419$ $ $512,000$

Investment in Lisa$$common stock $589,5000$

Investment in Lisa$$preferred stock $77,0000$

Investment in Lisa$$bonds $50,9300$

Fixed assets $1,112,000812,000$

Accumulated depreciation $(312,000)(212,000)$

Total assets $ $1,659,849$ $ $1,112,000$

Accounts payable $ $(414,849)$ $ $(120,942)$

Bonds payable $0(100,000)$

Discount on bonds payable $06,942$

Common stock $(312,000)(212,000)$

Preferred stock $0(112,000)$

Retained earnings, $12/31/24(933,000)(574,000)$

Total liabilities and equities $ $(1,659,849)$ $ $(1,112,000)$

Note: Credits are indicated by parentheses.

Required:

What consolidation worksheet adjustments would have been required as of January $1,2023,$ to eliminate the subsidiary's common and preferred stocks?

What consolidation worksheet adjustments would have been required as of December $31,2023,$ to account for Mona's purchase of Lisa's bonds?

What consolidation worksheet adjustments would have been required as of December $31,2023,$ to account for the intra$-$entity sale of fixed assets?

Assume that consolidated financial statements are being prepared for the year ending December $31,2024.$ Calculate the consolidated balance for each of the following accounts:

Franchises

Fixed Assets

Accumulated Depreciation

Expenses