On January 1, 2016, Alpha acquired 80 percent of Delta. Of Delta's total business fair value, $194,000 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, $160,800 of Omega's total business fair value was assigned to copyrights that had a remaining life of 12 years. Delta's book value was $642,500 on January 1, 2016 and Omega reported a book value of $157,000 on January 1, 2017.

Delta has made numerous inventory transfers to Alpha since the business combination was formed. Intra-entity gross profits of $20,100 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.

	Alpha Company				Delta Company				Omega Company				Consolidated Totals
Sales	$	(932,800	)		$	(729,650	)		$	(302,500	)		$	(1,733,950	)
Cost of goods sold		524,000				299,000				142,000				739,310
Operating expenses		303,000				226,000				90,000				642,100
Income of subsidiary		(203,200	)			(49,350	)			0				0
Separate company net income	$	(309,000	)		$	(254,000	)		$	(70,500	)
Consolidated net income													$	(352,540	)
Net income attributable to noncontrolling interest (Delta Company)														45,922
Net income attributable to noncontrolling interest (Omega Company)														17,130
Net income attributable to Alpha Company													$	(289,488	)
Retained earnings, 1/1/18	$	(607,500	)		$	(552,500	)		$	(117,000	)		$	(568,396	)
Net income (above)		(309,000	)			(254,000	)			(70,500	)			(289,488	)
Dividends declared		50,000				40,000				50,000				50,000
Retained earnings, 12/31/18	$	(866,500	)		$	(766,500	)		$	(137,500	)		$	(807,884	)
Cash and receivables	$	280,600			$	282,690			$	60,500			$	623,790
Inventory		314,000				515,000				225,000				1,028,590
Investment in Delta Company		864,400				0				0				0
Investment in Omega Company		0				278,810				0				0
Property, plant, and equipment		445,000				342,500				291,000				1,078,500
Copyrights		0				0				0				298,900
Total assets	$	1,904,000			$	1,419,000			$	576,500			$	3,029,780
Liabilities	$	(837,500	)		$	(532,500	)		$	(339,000	)		$	(1,709,000	)
Common stock		(200,000	)			(120,000	)			(100,000	)			(200,000	)
Retained earnings, 12/31/18		(866,500	)			(766,500	)			(137,500	)			(807,884	)
Noncontrolling interest in Delta Company, 12/31/18		0				0				0				(201,446	)
Noncontrolling interest in Omega Company, 12/31/18		0				0				0				(111,450	)
Total liabilities and equities	$	(1,904,000	)		$	(1,419,000	)		$	(576,500	)		$	(3,029,780	)

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.)

Prepare Entry *G to recognize the intra-entity gross profit in inventory in 2017.

Prepare Entry *C1 to recognize amortization expense from Dela's acquisition for 2017.

Prepare Entry *C2 to To recognize accrual adjustments for excess amortization and inventory deferral

Prepare Entry S1 to eliminate the stockholders' equity accounts of Omega against the parent's investment account and to recognize the outside ownership.

Prepare Entry S2 to eliminate the stockholders' equity accounts of Delta against the corresponding balance in the investment account and to recognize the outside ownership.

Prepare Entry A to recognize the January 1, 2018 unamortized copyrights.

Prepare Entry I1 to eliminate the intra-entity income accrual found on Alpha's records.

Prepare Entry I2 to eliminate the intra-entity income accrual found on Delta's records.

Prepare Entry D1 to eliminate the intra entity dividends for Delta.

Prepare Entry D2 to eliminate the intra entity dividends for Omega.

Prepare Entry E to recognize the current year amortization on copyrights.

Prepare Entry TI to eliminate the intra-entity inventory transfer.

Prepare Entry G to defer the ending intra-entity gross profit on the intra-entity transfers.