On January $1,2023,$ Mona, Incorporated, acquired $80$ percent of Lisa Company$$s common stock as well as $60$ percent of its preferred shares. Mona paid $$86,000$ in cash for the preferred stock, with a call value of $110$ percent of the $$50$ per share par value. The remaining $40$ percent of the preferred shares traded at a $$55,000$ fair value. Mona paid $$592,000$ for the common stock. At the acquisition date, the noncontrolling interest in the common stock had a fair value of $$148,000.$ The excess fair value over Lisa$$s book value was attributed to franchise contracts of $$75,000.$ This intangible asset is being amortized over a $30-$year period. Lisa pays all preferred stock dividends $($a total of $$29,000$ per year$)$ on an annual basis. During $2023,$ Lisa$$s book value increased by $$78,000.$

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 $$100,000$ and paid cash interest of $12$ percent per year. These bonds had been issued to the public to yield $15$ percent. Interest is paid each December $31.$ On January $2,2023,$ these bonds had a total $$91,440$ carrying amount. Mona paid $$53,170,$ indicating an effective interest rate of $10$ percent.

On January $3,2023,$ Mona sold Lisa fixed assets that had originally cost $$121,000$ but had accumulated depreciation of $$60,000$ when transferred. The transfer was made at a price of $$162,000.$ 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 $ $(542,000)$ $ $(242,000)$

Expenses $241,000141,000$

Dividend income$$Lisa common stock $(24,800)0$

Dividend income$$Lisa preferred stock $(17,400)0$

Net income $ $(343,200)$ $ $(101,000)$

Retained earnings, $1/1/24$ $ $(721,000)$ $ $(542,000)$

Net income $($above$)(343,200)(101,000)$

Dividends declared$$common stock $113,80031,000$

Dividends declared$$preferred stock $029,000$

Retained earnings, $12/31/24$ $ $(950,400)$ $ $(583,000)$

Current assets $ $151,419$ $ $521,000$

Investment in Lisa$$common stock $592,0000$

Investment in Lisa$$preferred stock $86,0000$

Investment in Lisa$$bonds $51,7360$

Fixed assets $1,121,000821,000$

Accumulated depreciation $(321,000)(221,000)$

Total assets $ $1,681,155$ $ $1,121,000$

Accounts payable $ $(409,755)$ $ $(100,882)$

Bonds payable $0(100,000)$

Discount on bonds payable $04,882$

Common stock $(321,000)(221,000)$

Preferred stock $0(121,000)$

Retained earnings, $12/31/24(950,400)(583,000)$

Total liabilities and equities $ $(1,681,155)$ $ $(1,121,000)$

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