On January 1, 2018, Pickle Corp. paid $80,000 to purchase 80% of the common stock of Sickle Company.

On date of the acquisition Sickle's Land was undervalued $3,800, and its Building (7 year life) was undervalued $4,200, and its Equipment (five-year life) was undervalued $2,000.

Part 1: Identify the component parts of the cost of the investment on the date of acquisition. Show your computations.

Organize your analysis in good form.

Part II: Update the component accounts making up the BOOK VALUE ELEMENT from the date of acquisision (12/1) through 12/31(in equation format).

Part III: Update the component accounts making up the EXCESS COST ELEMENT [under(over)valuation] from the date of acquisision (12/1) through 12/31(in equation format).

Part IV: Complete the consolidation worksheet. Using the above analysis, enter the necessary 12/31/2018 consolidation entries.

Label your entries (S,A,I,D,E) in narrow column beside entries. Enter formulas in the consolidation total column to complete the worksheet.12/31/2018Pickle Company12/31/2009Sickle Company Consolidation Entries Noncontrolling Consolidated12/31/2018 Debit Credit Interest Income Statement Revenues(1,510,000)(518,750)(2,028,750)Depreciation Expense500,000234,950EOperating Expenses954,280260,000Equity in Net Income of Sub(18,240)Separate Net Income(73,960)(23,800)Consolidated Net IncomeNoncontrolling Interest in Sub's Net IncomeControlling Interest in Sub's Net IncomeStatement of Retained EarningsRetained Earnings 1/1(122,500)(10,500)(122,500)Net Income (above)(73,960)(23,800)(73,960)Dividends Declared25,00015,000D25,000Retained Earnings 12/31(171,460)(19,300)Balance SheetCurrent Assets38,22014,00052,220Investment in Sickle Company86,240LandBuildings-net37,5008,650EAEquipment - net98,00081,800AGoodwill35,50024,800Total Assets295,460129,250Current Liabilities(18,340)(24,500)Long-term Liabilities(26,160)(10,950)AECommon Stock(44,500)(20,000)S20,000(35,000)Additional Paid-in Capital(35,000)(54,500)Noncontrolling Interest 1/1SANoncontrolling Interest 12/31Retained Earnings-above(171,460)(19,300)Total Liabilities & Equities(295,460)(129,250)