On January 1, 2019, Alpha acquired 80 percent of Delta. Of Delta's total business fair value, $170,000 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, $156,600 of Omega's total business fair value was assigned to copyrights that had a remaining life of 12 years. Delta's book value was $552,500 on January 1, 2019, and Omega reported a book value of $154,500 on January 1, 2020.

Delta has made numerous inventory transfers to Alpha since the business combination was formed. Intra-entity gross profits of $21,800 were present in Alpha's inventory as of January 1, 2021. During the year, $233,000 in additional intra-entity sales were made with $25,630 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		Delta Company		Omega Company		Consolidated Totals
Sales	$	(962,800	)		$	(737,410	)		$	(257,200	)		$	(1,724,410	)
Cost of goods sold		524,000				303,000				126,000				723,830
Operating expenses		383,000				227,000				57,500				689,050
Income of subsidiary		(207,200	)			(51,590	)			0				0
Separate company net income	$	(263,000	)		$	(259,000	)		$	(73,700	)
Consolidated net income													$	(311,530	)
Net income attributable to noncontrolling interest (Delta Company)														47,507
Net income attributable to noncontrolling interest (Omega Company)														18,195
Net income attributable to Alpha Company													$	(245,828	)
Retained earnings, 1/1/21	$	(737,500	)		$	(462,500	)		$	(114,500	)		$	(699,152	)
Net income (above)		(263,000	)			(259,000	)			(73,700	)			(245,828	)
Dividends declared		50,000				40,000				50,000				50,000
Retained earnings, 12/31/21	$	(950,500	)		$	(681,500	)		$	(138,200	)		$	(894,980	)
Cash and receivables	$	248,300			$	472,640			$	19,200			$	740,140
Inventory		350,000				320,000				181,000				825,370
Investment in Delta Company		777,200				0				0				0
Investment in Omega Company		0				276,360				0				0
Property, plant, and equipment		515,000				320,000				341,000				1,176,000
Copyrights		0				0				0				275,000
Total assets	$	1,890,500			$	1,389,000			$	541,200			$	3,016,510
Liabilities	$	(740,000	)		$	(587,500	)		$	(303,000	)		$	(1,630,500	)
Common stock		(200,000	)			(120,000	)			(100,000	)			(200,000	)
Retained earnings, 12/31/21		(950,500	)			(681,500	)			(138,200	)			(894,980	)
Noncontrolling interest in Delta Company, 12/31/21		0				0				0				(180,420	)
Noncontrolling interest in Omega Company, 12/31/21		0				0				0				(110,610	)
Total liabilities and equities	$	(1,890,500	)		$	(1,389,000	)		$	(541,200	)		$	(3,016,510	)

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.)

• Prepare Entry *G to recognize the intra-entity gross profit in inventory in 2020.
• Prepare Entry *C1 to convert to the equity method for Delta's acquisition.
• Prepare Entry *C2 to convert to the equity method for Omega's acquisition.
• Prepare entry S1 to eliminate stockholders' equity accounts of Omega.
• Prepare entry S2 to eliminate stockholders' equity accounts of Delta.
• Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for 2021.
• Prepare Entry I1 to eliminate the intra-entity income accrual found on Alpha's records.
• Prepare Entry I2 to eliminate the intra-entity income accrual found on Delta's records.
• Prepare Entry D1 to eliminate the intra entity dividends for Delta.
• Prepare Entry D2 to eliminate the intra entity dividends for Omega.
• Prepare Entry E to recognize the current year amortization.
• Prepare Entry TI to eliminate the intra-entity inventory transfer.
• Prepare Entry G to defer the ending intra-entity gross profit on the intra-entity transfers.