On January 1, 2019, Alpha acquired 80 percent of Delta. Of Delta's total business fair value, $211,000 was allocated to copyrights with a 20-year remaining life. Subsequently, on January 1, 2020, Delta obtained 70 percent of Omega's outstanding voting shares. In this second acquisition, $169,800 of Omega's total business fair value was assigned to copyrights that had a remaining life of 12 years. Delta's book value was $697,500 on January 1, 2019, and Omega reported a book value of $145,000 on January 1, 2020. Delta has made numerous inventory transfers to Alpha since the business combination was formed. Intra-entity gross profits of $20,900 were present in Alpha's inventory as of January 1, 2021. During the year, $203,000 in additional intra-entity sales were made with $22,330 in Intra-entity gross profits in inventory remaining at the end of the period. Both Alpha and Delta utilized the partial equity method to account for their investment balances. Following are the individual financial statements for the companies for 2021 with consolidated totals. Sales Cost of goods sold Operating expenses Income of subsidiary Separate company net income Consolidated net income Net income attributable to noncontrolling interest (Delta Company) Net income attributable to noncontrolling interest (Omega Company) Net income attributable to Alpha Company Retained earnings, 1/1/21 Net income (above) Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in Delta Company Investment in Omega Company Property, plant, and equipment Copyrights Total assets Liabilities Common stock Retained earnings, 12/31/21 Noncontrolling interest in Delta Company, 12/31/21 Noncontrolling interest in Omega Company, 12/31/21 Total liabilities and equities Alpha Company Delta Company Omega Consolidated Company Totals $ 580,000 335,000 (988,200) $ (643,850) $ (231,500) 249,000 105,000 52,000 $ (1,660,550) 732,430 221,000 632,700 (180,800) (52,150) 0 0 $ (254,000) $ (226,000) $ (74,500) $ (295,420) 40,823 18,105 $ (236,492) $ $ $ 250,400 363,000 (226,000) 50,000 40,000 (886,500) $ (793,500) $ (682,500) $ (607,500) (254,000) $ (105,000) $ (640,976) (74,500) 50,000 (236,492) 50,000 $ (129,500) $ (827,468) 333,990 330,000 $ 57,500 192,000 $ 641,890 862,670 899,600 0 0 0 0 279,510 0 0 466,000 450,000 0 0 $ 1,393,500 $ 1,979,000 $ (892,500) $ (480,000) (200,000) (886,500) $ (352,000) (100,000) (129,500) 1,248,000 320,850 $ 3,073,410 $ (1,724,500) (200,000) (827,468) (120,000) (793,500) 0 0 0 (210,142) 0 0 0 (111,300) $ (1,979,000) $ (1,393,500) $ (581,500) $(3,073,410) 332,000 0 $ 581,500 1 1 2 2 Retained earnings (Delta) Cost of goods sold Retained earnings (Delta) Investment in Omega Retained earnings (Alpha) Investment in Delta 3 3 4 4 5 5 6 6 7 7 Common stock (Omega) Retained earnings (Omega) Investment in Omega Noncontrolling interest in Omega Common stock (Delta) Retained earnings (Delta) Investment in Delta Noncontrolling interest in Delta Copyrights Investment in Delta Investment in Omega Noncontrolling interest in Delta Noncontrolling interest in Omega Income of subsidiary Investment in Delta 00 00 00 0000 0000 00000 00 20,900 20,900 9,905 9,905 43,053 43,053 100,000 105,000 120,000 8 8 9 9 10 10 11 11 12 Income of subsidiary Investment in Omega Investment in Delta Dividends Declared (Delta) Investment in Omega Dividends Declared (Omega) Operating expenses Copyrights 12 Sales Cost of goods sold Cost of goods sold 13 13 Inventory