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On January 1, 2019. Alpha acquired 80 percent of Delta Of Delta's total business fair value, $191,000 was allocated to copyrights with a 20-year remaining

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On January 1, 2019. Alpha acquired 80 percent of Delta Of Delta's total business fair value, $191,000 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 $145,800 of Omega's total business fair value was assigned to copyrights that had a remaining life of 12 years. Delta's book value was $655,000 on January 1, 2019, and Omega reported a book value of $164,000 on January 1, 2020 Delta has made numerous inventory transfers to Alpha since the business combination was formed. Intra-entity gross profits of $24.200 were present in Alpha's inventory as of January 1, 2021. During the year. $263,000 in additional intra-entity sales were made with $28,930 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 $(909, 200) 501,000 297,000 (220,000) $ (332,000) Delta Compariy 5 (693,510) 326,000 141,000 (49,490) $ (276,990) Onege Company $ (285,700) 131,eee 84, eee Consolidated Totals $(1,625,410) 699,730 543,700 0 $ (70,700) Sales Cost of goods sold Operating expenses Income of subsidiary Separate company net income Consolidated net income Net incone 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 Onege 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 Habilities and equities $ (732,500) (332.000) 50,000 $(1,014,500) 5 303,400 317,000 889,600 S (565,000) (276,000) 40,000 $(801,000) $ 445.150 502,500 $(124,000) (70,700) 50,000 5 (144,700) $ 24,700 180,000 $ (381,980) 50,643 17,565 5 (313,772) $ (691,056) (313,772) 50,000 5 (954,828) 5 773,250 925,520 507,000 273, 350 347,500 329,000 $ 2,017,000 $ (802,500) (200,000) (1,014,500) $1,573,500 $ (652,500) (120,000 (801,000) $ 533,700 $ (289,000) (100,000) (144,700) 0 1,183,500 283,850 $3,216,170 $(0,744.000) (200,000) (954,828) (207,482) 109.860) $(3,216,170) $(2,017,000) $(1,573,500) $ (533,700 Note: Parentheses indicate a credit balance. Consolidation Worksheet Entries FEE.. Prepare Entry *G to recognize the intra-entity gross profit in inventory in 2020. Note: Enter debits before credits. Transaction Accounts Debit Credit 1 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries ..... Prepare Entry *Ci to convert to the equity method for Delta's acquisition. Note: Enter debits before credits. Transaction Accounts Debit Credit 2 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries ..... Prepare Entry *C2 to convert to the equity method for Omega's acquisition. Note: Enter debits before credits. Accounts Debit Credit Transaction 3 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries ..... Prepare entry si to eliminate stockholders' equity accounts of Omega. Note: Enter debits before credits. Accounts Debit Credit Transaction 4 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries 13 ..... od Prepare entry 52 to eliminate stockholders' equity accounts of Delta. Note: Enter debits before credits. Transaction Accounts Debit Credit 5 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries ..... Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for 2021. Note: Enter debits before credits. Accounts Debit Credit Transaction 6 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries ..... B Thing Prepare Entry 11 to eliminate the Intra-entity income accrual found on Alpha's records. Note: Enter debits before credits. Transaction Accounts Debit Credit 7 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries 13 ... Prepare Entry 12 to eliminate the Intra-entity income accrual found on Delta's records. Note: Enter debits before credits. Transaction Accounts Debit Credit 8 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries . ALLA Prepare Entry G to defer the ending intra-entity gross profit on the intra-entity transfers. Note: Enter debits before credits. Transaction Accounts Debit Credit 13 Record entry Clear entry view consolidation entries

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