On January 1, 2017, Bretz, Inc., acquired 60 percent of the outstanding shares of Keane Company for $573,000 in cash. The price paid was proportionate to Keane's total fair value although at the date of acquisition, Keane had a total book value of $810,000. All assets acquired and liabilities assumed had fair values equal to book values except for a copyright (six-year remaining life) that was undervalued in Keane's accounting records by $120,000. During 2017, Keane reported net income of $150,000 and declared cash dividends of $80,000. On January 1, 2018, Bretz bought an additional 30 percent interest in Keane for $300,000. The following financial information is for these two companies for 2018. Keane issued no additional capital stock during either 2017 or 2018. Also, at year-end, there were no intra-entity receivables or payables. Keane Company $ (300,000) 120,000 $ $ (180,000) (500,000) (180,000) 60,000 (620,000) 190,000 $ $ Revenues Operating expenses Equity in Keane earnings Net income Retained earnings 1/1 Net income (above) Dividends declared Retained earnings 12/31 Current assets Investment in Keane Company Trademarks Copyrights Equipment (net) Total assets Liabilities Common stock Additional paid-in capital Additional paid-in capital-step acquisition Retained earnings 12/31 Total liabilities and equities Bretz, Inc. $ (402,000) 200,000 (144,000) $ (346,000) (797,000) (346,000) 143,000 $ (1,000,000) 224,000 994,500 106,000 210,000 380,000 $ 1,914,500 (453,000) (400,000) (60,000) (1,500) (1,000,000) $ (1,914,500) $ $ 600,000 300,000 110,000 1,200,000 (200,000) (300,000) (80,000) (620,000) $ (1,200,000) a. Show the journal entry Bretz made to record its January 1, 2018, acquisition of an additional 30 percent of Keane Company shares. b. Prepare a schedule showing how Bretz determined the Investment in Keane Company balance as of December 31, 2018. c. Prepare a consolidated worksheet for Bretz, Inc., and Keane Company for December 31, 2018. Complete this question by entering your answers in the tabs below. Required A Required B Required Show the journal entry Bretz made to record its January 1, 2018, acquisition of an additional 30 percent of Keane Company shares. (If no entry is required for a transaction/event, select "No journal entry required in the first a View transaction list Journal entry worksheet Record the 30% additional investment in Keane. Note: Enter debits before credits. General Journal Debit Credit Date 01/01/2018 Record entry Clear entry View general journal Required A Required B > Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a schedule showing how Bretz determined the Investment in Keane Company balance as of December 31, 2018. (Amounts to be deducted should be indicated with a minus sign.) Investment in Keane Company 12/31/18 BRETZ, INC. AND KEANE COMPANY Consolidation Worksheet Year Ending December 31, 2018 Consolidation Entries Bretz, Inc. Keane Co. Debit Credit $ (402,000) $ (300,000) 200,000 120,000 (144,000) S (346,000) S (180,000) Noncontrolling Interest Totals Accounts Revenues Operating expenses Equity in Keane's income Separate company net income Consolidated net income NI attributable to noncontrolling interest NI attributable to Bretz, Inc. Retained earnings, 1/1 Net income (above) Dividends declared Retained earings, 12/31 Current assets Investment in Keane Company Trademarks Copyrights Equipment (net) Goodwill Total assets Liabilities Common stock Additional paid-in capital APIC-step acquisition Retained earnings, 12/31 Non-controlling interest 1/1 Non-controlling interest 12/31 S (797,000) S (500,000) (346,000) (180,000) 143,000 60,000 (1.000.000) S (620,000) $ 224,000 $ 190,000 994,500 106,000 600,000 210,000 300,000 380,000 110,000 HHHHHHHHHH $ 1,914,500 S (453,000) (400,000) (60,000) (1,500) (1,000,000) $ 1,200,000 $ (200,000) (300,000) (80,000) (620,000) Total liabilities and equities (1.914,500)| (1,200,000)