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On January 1, 2016. Aronsen Company acquired 80 percent of Siedel Company's outstanding shares. Sledel had a net book value on that date of $660,000:

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On January 1, 2016. Aronsen Company acquired 80 percent of Siedel Company's outstanding shares. Sledel had a net book value on that date of $660,000: common stock ($10 par value) of $300,000 and retained earnings of $360,000. Aronsen paid $641,600 for this investment. The acquisition date fair value of the 20 percent noncontrolling interest was $160,400. The excess fair value over book value associated with the acquisition was used to increase land by $52,000 and to recognize copyrights (10-year remaining life) at $90,000. Subsequent to the acquisition, Aronsen applied the initial value method to its investment account. In the 2016-2017 period, the subsidiary's retained earnings increased by $260.000. During 2018, Siedel earned income of $96,000 while declaring $36,000 in dividends. Also, at the beginning of 2018, Siedel issued 2.000 new shares of common stock for $54 per Share to finance the expansion of its corporate facilities. Aronsen purchased none of these additional shares and therefore recorded no entry Prepare the appropriate 2018 consolidation entries for these two companies. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is complete but not entirely correct. No Transaction Credit Debit 360,000 1 Accounts Investment in Siedel Retained earnings (Aronsen) 1 360,000 2 2 108,000 Investment in Siedel Additional paid-in capital (Aronsen) 108.000 3 3 Common stock (Siedel) Additional paid in capital (Siedel) Retained earnings (Siedel) Investment in Siedel Noncontrolling interest in Siedel 300,000 108,000 360,000 641.600 126,400 4 Land Copyrights Investment in Sledel Noncontrolling interest in Siedel 52.000 90,000 OO 99,500 42,500 5 5 Dividend income > 36,000 Dividends declared 36.000 6 6 9,000 Amortization expense Copyrights Ol 9,000

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