On January 1, 2016. Alpha acquired 80 percent of Delta. Of Delta's total business fair value, $138,000 was allocated to copyrights with a 20-year remaining life. Subsequently, on January 1, 2017, Delta obtained 70 percent of Omega's outstanding voting shares. In this second acquisition, $164,400 of Omega's total business fair value was assigned to copyrights that had a remaining life of 12 years. Delta's book value was $647,500 on January 1, 2016 and Omega reported a book value of $140,500 on January 1, 2017 Delta has made numerous inventory transfers to Alpha since the business combination was formed. Intra entity gross profits of $15,300 were present in Alpha's inventory as of January 1, 2018. During the year, $231,000 in additional intra-entity sales were made with $25.410 in Intra-entity gross profits in inventory remaining at the end of the period. Both Alpha and Delta utilized the partial equity method to account for their investment balances Following are the individual financial statements for the companies for 2018 with consolidated totals $ $ 5 Alpha Company (999,800) 531.000 371,000 (223,200) (321,000) Delta Company (672,300) 294,000 149.000 (49,780) (279.000) Company (264,50) 143,000 50, 500 Consolidated Totals (1,705,600) 747,110 591,100 $ $ $ (71,000) $ (367,390) 50,480 5 $ Sales Cost of goods sold Operating expenses Income of subsidiary Separate company net income Consolidated net income Net Income attributable to controlling Interest (Delta Company) Net Income attributable to noncontrolling interest (Omega Company) et income attributable to Alpha Company Retained earnings, 1/1/18 Net Income (above) Dividends declared Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Delta Company Tavest in O Company Property, plant, and equipment Copyrights Total assets Liabilities Con stock Retained earnings, 12/31/18 Noncontrolling interest in Delta Company. 12/31/18 Noncontrolling interest in any. 12/31/18 Total liabilities and equities $ 5 100. (71.000) $ 250,00) (321,000) 50.000 $(1,021,000) $ 164,900 381.000 543.600 17,190 (299,720) (719,048) (299,720) se, (968,768) 214,770 838,590 (557.500) (279.00) 40. (796,500) 526,370 345.oe 5 $ 5 (121,500) 23.500 $ 464.00 270,13 367,500 308. $ $ 1,853,500 5 (632, 5 (200,000) (1.021, 000) 5 $ 1.59.00 (592,seo) (120.00) (796,500) $19,500 (298,00) (100.000) (121.50) 1,139,500 254,300 $2.997, 16e 5 (1.523.00) (2000) (968, 768) (197.542) 107.550) (2,992.160) (1.85 3.500) $(1.5e9. 5 519,500) Develop the worksheet entries necessary to derive these reported balances: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 5 Common stock (Delta) Retained earnings (Delta) Investment in Delta Noncontrolling interest in Delta Copyrights Investment in Delta Investment in Omega Noncontrolling interest in Delta Noncontrolling interest in Omega Income of subsidiary Investment in Delta Income of subsidiary Investment in Omega Investment in Delta Dividends Declared (Delta) Investment in Omega Dividends Declared (Omega) Operating expenses Copyrights Sales Cost of goods sold Cost of goods sold Inventory 25 410
