On January 1, 2013, Mona, Inc. acquired 80% of Lisa Companys common stock as well as 60%of its preferred shares. Mona paid $65,000 in cash for the preferred stock, with a call value of 110% of the $50 per share par value. The remaining 40% of the preferred shares traded at a $34,000 fair value. Mona paid $552,800 for the common stock. At the acquisition date, the noncontrolling interest in the common stock had a a fair value of $138,200. The excess fair value over Lisas book value was attributed to franchise contacts of $40,000. This intangible asset is being amortized over a 40-year period. Lisa pays all preferred stock dividends (a total of $8,000 per year) on an annual basis. During 2013, Lisas book value increased by $50,000.

On January 2, 2013, Mona acquired one-half of Lisas outstanding bonds payable to reduce the business combinations debt position. Lisas bonds had a face value of $100,000 and paid cash interest of 10% per year. These bonds had been issued to the public to yield 14%. Interest is paid each December 31. On January 2, 2013, these bonds had a total $88,350 book value. Mona paid $53,310, indicating an effective interest rate of 8%.

On January 3, 2013, Mona sold Lisa fixed assets that had originally cost $100,000 but had accumulated deprecation of $60,000 when transferred. The transfer was made at a price of $120,000. 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, 2014 are as follows:

	Mona	Lisa
Sales	(500,000)	(200,000)
Expenses	220,000	120,000
Dividend income - Lisa common stock	(8,000)	-
Dividend income - Lisa preferred stock	(4,800)	-
Net income	(292,800)	(80,000)
Retained earnings, 1/1/14	(700,000)	(500,000)
Net income (from above)	(292,800)	(80,000)
Dividends declared - common stock	92,800	10,000
Dividends declared - preferred stock	-	8,000
Retained earnings, 12/31/14	(900,000)	(562,000)
Current assets	130,419	500,000
Investment in Lisa - common stock	552,800	-
Investment in Lisa - preferred stock	65,000	-
Investment in Lisa - bonds	51,781	-
Fixed assets	1,100,000	800,000
Accumulated depreciation	(300,000)	(200,000)
Total assets	1,600,000	1,100,000
Accounts payable	(400,000)	(144,580)
Bonds payable	-	(100,000)
Discount on bonds payable	-	6,580
Common stock	(300,000)	(200,000)
Preferred stock	-	(100,000)
Retained earnings, 12/31/14	(900,000)	(562,000)
Total liabilities and owners' equity	(1,600,000)	(1,100,000)

Answer the following:

A. What consolidation worksheet adjustment oudl have been required as of January 1, 2013 to eliminate the subsidiarys common and preferred stocks?

B. What consolidation worksheet adjustments would have been required as of December 31, 2013, to account for Monas purchase of Lisas bonds?

C. What consolidation worksheet adjustments would have been required as of December 31, 2013, to account for the intra-entity sale of fixed assets?

D. Assume that consolidated financial statements are being prepared for the year ending December 31, 2014. Calculate the consolidated balance for each of the following accounts:

Franchises

Fixed assets

Accumulated depreciation

Expenses