On January 1, 2018, Beauty Corporation acquired The Beast Company. Beauty paid $440,000 for 80% of The Beast's common stock. The fair value of the NCI common shares were $110,000 On the date of acuisiton, The Beast Co. had the following balance sheet: The Beast Company Balance Sheet January 1, 2018 Assets Accounts receivable Inventory Land Buildings Accumulated depreciation Equipment Accumulated depreciation Total Assets $60,000 $40,000 $60,000 $200,000 (550,000) $72,000 ($30,000) $352,000 Liabilities and Equity Accounts payable Bonds payable Common stock, $1 par Paid-in capital in excess Retained earnings $40,000 $100,000 $10,000 $90,000 $112,000 Total liabilities and equity $352,000 Buildings, which have a 20-year life, are understated by $100,000. Total Assets $352,000 Total liabilities and equity $352,000 Buildings, which have a 20 year life, are understated by $100,000. Equipment, which has a 5 year life, is understated by $38,000. Any remaining excess is considered goodwill. Beauty uses the simple equity method to account for its investment in The Beast Beauty and The Beast trial balances for December 31, 2019 are shown on the consolidated worksheet. On January 1, 2019 Beauty held merchandise sold to it by The Beast for $12,000. The beginning inventory had an applicable gross profit of 25% During 2019, The Beast sold merchandise to Beauty for $75,000. > On December 31, 2019, Beauty held $18,000 of this merchandise in its inventory. The ending inventory had an applicable gross profit of 30% Beauty owed The Beast S20,000 as a result of this intercompany sale on December 31, 2019. Required: 1. Prepare a value analysis and a determination and distribution schedule for the investment in The Beast Company 2. Prepare the Amortization and Income Distribution schedules. 3. Complete a consolidated worksheet for Beauty Corporation and its subsidiary The Beast Company as of December 31, 2019. On January 1, 2018, Beauty Corporation acquired The Beast Company. Beauty paid $440,000 for 80% of The Beast's common stock. The fair value of the NCI common shares were $110,000 On the date of acuisiton, The Beast Co. had the following balance sheet: The Beast Company Balance Sheet January 1, 2018 Assets Accounts receivable Inventory Land Buildings Accumulated depreciation Equipment Accumulated depreciation Total Assets $60,000 $40,000 $60,000 $200,000 (550,000) $72,000 ($30,000) $352,000 Liabilities and Equity Accounts payable Bonds payable Common stock, $1 par Paid-in capital in excess Retained earnings $40,000 $100,000 $10,000 $90,000 $112,000 Total liabilities and equity $352,000 Buildings, which have a 20-year life, are understated by $100,000. Total Assets $352,000 Total liabilities and equity $352,000 Buildings, which have a 20 year life, are understated by $100,000. Equipment, which has a 5 year life, is understated by $38,000. Any remaining excess is considered goodwill. Beauty uses the simple equity method to account for its investment in The Beast Beauty and The Beast trial balances for December 31, 2019 are shown on the consolidated worksheet. On January 1, 2019 Beauty held merchandise sold to it by The Beast for $12,000. The beginning inventory had an applicable gross profit of 25% During 2019, The Beast sold merchandise to Beauty for $75,000. > On December 31, 2019, Beauty held $18,000 of this merchandise in its inventory. The ending inventory had an applicable gross profit of 30% Beauty owed The Beast S20,000 as a result of this intercompany sale on December 31, 2019. Required: 1. Prepare a value analysis and a determination and distribution schedule for the investment in The Beast Company 2. Prepare the Amortization and Income Distribution schedules. 3. Complete a consolidated worksheet for Beauty Corporation and its subsidiary The Beast Company as of December 31, 2019