On January 1, 2018, Blanca Corporation purchased 75 percent of Aspen Companys stock at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 25 percent of Aspens book value. The balance sheets for Blanca and Aspen at December 31, 2021, and income statements for 2021 were reported as follows:

	Blanca Corp	Aspen Co.
Income Statement
Sales	$ (450,000)	$ (250,000)
Equity in Aspen's Earnings	(20,250)	-
Interest Income	(18,500)	-
Cost of goods sold	285,000	136,000
Other operating Expenses	50,000	40,000
Depreciation expense	35,000	24,000
Interest Expense	24,000	10,500
Miscellaneous Expense	11,900	9,500
Separate Company NI	(82,850)	(30,000)
Statement of Retained Earnings
Retained Earnings, 1/1	(222,500)	(163,000)
Net Income	(82,850)	(30,000)
Dividends Paid	30,000	10,000
Retained Earnings, 12/31	(275,350)	(183,000)
Balance Sheet
Cash	53,100	47,000
Accounts receivable	176,000	65,000
Interest & other receivables	45,000	10,000
Inventory	140,000	50,000
Land	50,000	35,000
Building & equipment	400,000	240,000
Accumulated depreciation	(185,000)	(94,000)
Investment in Aspen Company stock	172,500	-
Investment in Aspen Company bonds	42,400	-
Other investments	110,850	-
Total assets	1,004,850	353,000
Accounts payable	(79,500)	(11,000)
Interest & other payables	(45,000)	(12,000)
Bonds payable	(300,000)	(100,000)
Bond Discount		3,000
Common Stock	(150,000)	(30,000)
Additional Paid-In Capital	(155,000)	(20,000)
Retained Earnings, 12/31	(275,350)	(183,000)
Total Liabilities and Equity	(1,004,850)	(353,000)

Note: Parentheses indicate a credit balance

Additional Information

1. Aspen issued $100,000, par value 10-year bonds with a coupon rate of 10 percent on January 1, 2018, at $95,000. On January 1, 2021, Blanca purchased $40,000 par value of Aspens bonds for $42,800. Both companies amortize bond premiums and discounts on a straight-line basis. Interest payments are made on December 31.

2. Since the date it was acquired by Blanca, Aspen has sold inventory to Blanca on a regular basis. The amount of such intercompany sales totaled $50,000 in 2021, including a 30-percentage gross profit. All inventory transferred in 2021 had been resold by December 31, 2021, except inventory for which Blanca had paid $10,000.

3. Blanca sold a building to Aspen for $65,000 on January 1, 2021. Blanca had purchased the building for $125,000 and was depreciating it on a straight-line basis over 25 years. At the time of sale, Blanca reported accumulated depreciation of $75,000 and a remaining life of 10 years. Assume Blanca uses the equity method.

Use the provided pre-closing trial balances and additional information to prepare:

1. a December 31, 2021 consolidation spreadsheet (on Excel), in good form. The worksheet should include balances for the controlling and non-controlling interests in consolidated net income.
2. A separate worksheet in the same workbook should include the consolidation journal entries.
3. Computations supporting your entries should be clearly labeled and included on a third worksheet in the same workbook.