On January 1, 2019, Alpha acquired 80 percent of Delta. Of Delta's total business fair value, $157,000 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, $126,600 of Omega's total business fair value was assigned to copyrights that had a remaining life of 12 years. Delta's book value was $635,000 on January 1, 2019, and Omega reported a book value of $159,500 on January 1, 2020. Delta has made numerous inventory transfers to Alpha since the business combination was formed. Intra-entity gross profits of $22,200 were present in Alpha's inventory as of January 1, 2021. During the year, $223,000 in additional intra-entity sales were made with $24,530 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 $ (1,117,200 ) $ (582,520 ) $ (285,900 ) $ (1,762,620 ) Cost of goods sold 571,000 278,000 143,000 771,330 Operating expenses 393,000 132,000 66,500 609,900 Income of subsidiary (180,800 ) (53,480 ) 0 0 Separate company net income $ (334,000 ) $ (226,000 ) $ (76,400 ) Consolidated net income $ (381,390 ) Net income attributable to noncontrolling interest (Delta Company) 41,687 Net income attributable to noncontrolling interest (Omega Company) 19,755 Net income attributable to Alpha Company $ (319,948 ) Retained earnings, 1/1/21 $ (822,500 ) $ (545,000 ) $ (119,500 ) $ (786,272 ) Net income (above) (334,000 ) (226,000 ) (76,400 ) (319,948 ) Dividends declared 50,000 40,000 60,000 50,000 Retained earnings, 12/31/21 $ (1,106,500 ) $ (731,000 ) $ (135,900 ) $ (1,056,220 ) Cash and receivables $ 452,100 $ 247,250 $ 97,900 $ 797,250 Inventory 357,000 345,000 193,000 870,470 Investment in Delta Company 806,400 0 0 0 Investment in Omega Company 0 253,750 0 0 Property, plant, and equipment 516,000 515,000 299,000 1,330,000 Copyrights 0 0 0 238,950 Total assets $ 2,131,500 $ 1,361,000 $ 589,900 $ 3,236,670 Liabilities $ (825,000 ) $ (510,000 ) $ (354,000 ) $ (1,689,000 ) Common stock (200,000 ) (120,000 ) (100,000 ) (200,000 ) Retained earnings, 12/31/21 (1,106,500 ) (731,000 ) (135,900 ) (1,056,220 ) Noncontrolling interest in Delta Company, 12/31/21 0 0 0 (189,030 ) Noncontrolling interest in Omega Company, 12/31/21 0 0 0 (102,420 ) Total liabilities and equities $ (2,131,500 ) $ (1,361,000 ) $ (589,900 ) $ (3,236,670 ) 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.) 1Prepare Entry *G to recognize the intra-entity gross profit in inventory in 2020. 2Prepare Entry *C1 to convert to the equity method for Delta's acquisition. 3Prepare Entry *C2 to convert to the equity method for Omega's acquisition. 4Prepare entry S1 to eliminate stockholders' equity accounts of Omega. 5Prepare entry S2 to eliminate stockholders' equity accounts of Delta.1Prepare Entry *G to recognize the intra-entity gross profit in inventory in 2020. 2Prepare Entry *C1 to convert to the equity method for Delta's acquisition. 3Prepare Entry *C2 to convert to the equity method for Omega's acquisition. 4Prepare entry S1 to eliminate stockholders' equity accounts of Omega. 5Prepare entry S2 to eliminate stockholders' equity accounts of Delta.1Prepare Entry *G to recognize the intra-entity gross profit in inventory in 2020. 2Prepare Entry *C1 to convert to the equity method for Delta's acquisition. 3Prepare Entry *C2 to convert to the equity method for Omega's acquisition. 4Prepare entry S1 to eliminate stockholders' equity accounts of Omega. 5Prepare entry S2 to eliminate stockholders' equity accounts of Delta. 6Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for 2021. 7Prepare Entry I1 to eliminate the intra-entity income accrual found on Alpha's records. 8Prepare Entry I2 to eliminate the intra-entity income accrual found on Delta's records. 9Prepare Entry D1 to eliminate the intra entity dividends for Delta. 10Prepare Entry D2 to eliminate the intra entity dividends for Omega. 11Prepare Entry E to recognize the current year amortization. 12Prepare Entry TI to eliminate the intra-entity inventory transfer. 13Prepare Entry G to defer the ending intra-entity gross profit on the intra-entity transfers