On January 1, 2019, Alpha acquired 80 percent of Delta. Of Delta's total business fair value, $194,000 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, $160,800 of Omega's total business fair value was assigned to copyrights that had a remaining life of 12 years. Delta's book value was $642,500 on January 1, 2019, and Omega reported a book value of $157,000 on January 1, 2020. Delta has made numerous inventory transfers to Alpha since the business combination was formed. Intra-entity gross profits of $20,100 were present in Alpha's inventory as of January 1, 2021. During the year, $231,000 in additional intra-entity sales were made with $25,410 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. Alpha Company $ (932,800) 524,000 303,000 (203,200) $ (309,000) Delta Company $ (729,650) 299,000 226,000 (49,350) $ (254,000) Omega Company $ (302,500) 142,000 9 90,000 Consolidated Totals $(1,733,950) 739,310 642,100 $ (70,500) $ 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 (552,500) (254,000) 40,000 (766,500) 282,690 515,000 $ $ (352,540) 45,922 17,130 $ (289,488) $ (568, 396) (289,488) 50,000 $ (807,884) $ 623,790 1,028,590 0 $ $ (607,500) (309,000) 50,000 $ (866,500) $ 280,600 314,000 864,400 0 445,000 0 $ 1,904,000 $ (837,500) $ (117,000) (70,500) 50,000 $ (137,500) $ 60,500 225,000 0 0 291,000 278,810 342,500 $ 1,419,000 $ (532,500) (120,000) (766,500) 1,078,500 298,900 $ 3,029,780 $(1,709,000) (200,000) (807,884) (201,446) (111, 450) $(3,029,780) $ 576,500 $ (339,000) (100,000) (137,500) 0 0 $ (576,500) (866,500) 0 0 $(1,904,000) $(1,419,000) Note: Parentheses indicate a credit balance. 5 Prepare entry S2 to eliminate stockholders' equity accounts of Delta. 5 5 120,000 520,900 Common stock (Delta) Retained earnings (Delta) Investment in Delta Noncontrolling interest in Delta 512,720 128,180