On January 1, 2019, Alpha acquired 80 percent of Delta. Of Delta's total business fair value, $138,000 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, $164,400 of Omega's total business fair value was assigned to copyrights that had a remaining life of 12 years. Delta's book value was $647,500 on January 1, 2019, and Omega reported a book value of $140,500 on January 1, 2020. Delta has made numerous inventory transfers to Alpha since the business combination was formed. Intra-entity gross profits of $15,300 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 Delta Omega Consolidated Company Company Company Totala Sales $ (999,800) $ (672,300) $ (264,500) $(1,705,600) Cost of goods sold 531,000 294,000 143,000 747, 110 Operating expenses 371.000 149,000 50,500 591,100 Income of subsidiary (223,200) (49,700) 0 0 Separate conpany net income $ (321,000) $ (279,000) $ (71.000) Consolidated net income $(367,390) Met income attributable to noncontrolling interest (Delta Company) 50,480 Net income attributable to noncontrolling interest (Omega Company) 17,190 Net Income attributable to Alpha Company $(299,720) Retained earnings, 1/1/21 $ (750,000) $ (557,500) $ (100,500) $ (719,048) Net Income (above) (321,000) (279,000) (71,000) (299,720) Dividends declared 50,000 40,000 50,000 50,000 Retained earnings, 12/31/21 $(1,021,000) $(796,500) $ (121,500) $(968, 768) Canh and receivables $ 164,900 $ 526,370 $ 23,500 $ 714, 770 Inventory 381,000 345,000 188,000 888, 590 Tnvestment in Delta Company 843,600 0 0 Tavestment in Omega Company 270,130 0 Property, plant, and equipment 464,000 367,500 308,000 1,139,500 Copyrights 254,300 Total assets $ 1,853,500 $ 1,509,000 $ 519,500 $ 2,997,160 Liabilities $ (632,500) $(592,500) $ (298,000) ${1,523,000) Common stock (200,000) (120,000) (100,000) (200,000) Retained earnings 12/31/21 (1,021.000) (796,500) (121,500) (968,768) Hongontrolling interest in Delta Company, 12/31/21 0 0 0 (197,842) Noncontrolling Interest in Omega Company, 12/31/21 0 0 102.550) Total liabilities and equities 5(1,853,500) $(1,509,000) $ (519,500) 5(2,997,160) 0 0 0 0 0 0 Note: Parentheses indicate a credit balance. Develop the worksheet entries necessary to derive these reported balances: (if no entry is required for a transaction/event, select "No Journal entry required in the first account field.)
