On January 1, 2016, Alpha acquired 80 percent of Delta. Of Delta's total business fair value, $157,000 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, $126,600 of Omega's total business fair value was assigned to copyrights that had a remaining life of 12 years. Delta's book value was $635,000 on January 1, 2016 and Omega reported a book value of $159,500 on January 1, 2017. Delta has made numerous inventory transfers to Alpha since the business combination was formed. Intra-entity gross profits of $22,200 were present in Alpha's inventory as of January 1, 2018. During the year, $223,000 in additional intra-entity sales were made with $24,530 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. Alpha Delta Omega Consolidated Company Company Company Totals Sales $(1,117,280) $ (582,520) $ (285,900) $(1,762,620) Cost of goods sold 571,000 278,000 143,000 771,330 Operating expenses 393,000 132,000 66,500 609,900 Income of subsidiary (180,880) (53,480) @ Separate company net income $ (334,000) $ (226,000) $ (76,400) Consolidated net income $ (381,390) Net income attributable to noncontrolling interest (Delta Company) 41,687 Net income attributable to noncontrolling interest (Omega Company) 19,755 Net income attributable to Alpha Company $ (319,948) Retained earnings, 1/1/18 $ (822,500) $ (545,000) Net income (above) $ (119,500) (786,272) (334,000) (226,000) (76,400) Dividends declared (319,948) 50,000 40,000 68,000 50,000 Retained earnings, 12/31/18 $(1, 106,500) $ (731,000) $ (135,900) $(1,056,220) Cash and receivables $ 452,100 $ 247,250 Inventory 97,900 $ 797,250 357,000 Investment in Delta Company 345,000 193,000 870, 478 806,480 Investment in Omega Company Property, plant, and equipment 253,750 8 516,000 515,000 Copyrights 299,000 1,330,000 238,950 +2.131.500 $ 1.361.000 $ $ 3 Tatal ecete 3 Son 516,000 515,000 299,000 a Property, plant, and equipent Copyrights Total assets Liabilities Connon stock Retained earnings, 12/31/18 Noncontrolling interest in Delta Company, 12/31/18 Noncontrolling interest in Omega Company, 12/31/18 Total liabilities and equities $ 2,131,500 $ (825,000) (200,000) (1,106,500) 1,361,000 $ (510,000) (120,000) (731, 000) $ 589,900 $ (354,000) (100,000) (135,900) 1,330,000 238,950 $ 3, 236,670 $(1,689,000) (200,000) (1,856,220) (189,030) (102,420) $13,236,670) $(2,131,500) $(1,361,000) @ $ (589,900) 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.) view transaction list Consolidation Worksheet Entries Prepare Entry Si to eliminate the stockholders' equity accounts of Omega against the parent's investment account and to recognize the outside ownership. Note: Enter debits before credits Transaction Accounts Debit Credit 4 view transaction list Consolidation Worksheet Entries Prepare Entry A to recognize the January 1, 2018 unamortized copyrights. Note: Enter debits before credits. Transaction Accounts Debit Credit 6 ew transaction list Consolidation Worksheet Entries repare Entry records. to eliminate the intra-entity income accrual found on Alpha's Note: Enter debits before credits. Transaction Accounts Debit Credit 7 view transaction list Consolidation Worksheet Entries Prepare Entry 12 to eliminate the intra-entity income accrual found on Delta's records. Note: Enter debits before credits Transaction Accounts Debit Credit 8 iew transaction list Consolidation Worksheet Entries Prepare Entry D1 to eliminate the intra entity dividends for Delta. Note: Enter debits before credits. Transaction Accounts Debit Credit 9 Record entry Clear entry view consolidation entries 2 Consolidation Worksheet Entries 1 ..... 5 6 7 8 9 10 02 > Prepare Entry D2 to eliminate the intra entity dividends for Omega. Note: Enter debits before credits Transaction Accounts Debit Credit 10 Record entry Clear entry view consolidation entries