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 Company				Delta Company				Omega Company				Consolidated Totals
Sales	$	(1,117,200	)		$	(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		(180,800	)			(53,480	)			0				0
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	)		$	(119,500	)		$	(786,272	)
Net income (above)		(334,000	)			(226,000	)			(76,400	)			(319,948	)
Dividends declared		50,000				40,000				60,000				50,000
Retained earnings, 12/31/18	$	(1,106,500	)		$	(731,000	)		$	(135,900	)		$	(1,056,220	)
Cash and receivables	$	452,100			$	247,250			$	97,900			$	797,250
Inventory		357,000				345,000				193,000				870,470
Investment in Delta Company		806,400				0				0				0
Investment in Omega Company		0				253,750				0				0
Property, plant, and equipment		516,000				515,000				299,000				1,330,000
Copyrights		0				0				0				238,950
Total assets	$	2,131,500			$	1,361,000			$	589,900			$	3,236,670
Liabilities	$	(825,000	)		$	(510,000	)		$	(354,000	)		$	(1,689,000	)
Common stock		(200,000	)			(120,000	)			(100,000	)			(200,000	)
Retained earnings, 12/31/18		(1,106,500	)			(731,000	)			(135,900	)			(1,056,220	)
Noncontrolling interest in Delta Company, 12/31/18		0				0				0				(189,030	)
Noncontrolling interest in Omega Company, 12/31/18		0				0				0				(102,420	)
Total liabilities and equities	$	(2,131,500	)		$	(1,361,000	)		$	(589,900	)		$	(3,236,670	)