On January 1, 2019, Westermaat Corporation acquired 100 percent of the voting stock of Vossenbelt Corporation in exchange for 4,034,000 in cash and securities. On the acquisition date, Vossenbelt had the following balance sheet:

Cash	46,000	Accounts payable	114,000
Accounts receivable	194,000	Long-term debt	1,986,000
Inventory	280,000
Equipment (net)	2,980,000	Common stock	1,600,000
Trademarks	1,700,000	Retained earnings	1,500,000
Total assets	5,200,000	Total liabilities and equity	5,200,000

At the acquisition date, the carrying amounts of Vossenbelts assets and liabilities were generally equivalent to their fair values except for the following assets:

Asset	Book value	Fair value	Remaining useful life
Equipment	2,980,000	3,220,000	8 years
Customer lists	0	320,000	4 years
Trademarks	1,700,000	1,800 000	indefinite

During the next two years, Vossenbelt has the following income and dividends in its own separately prepared financial reports to its parent.

	Net income	Dividends
2019	350,000	50,000
2020	756,000	90,000

Dividends are declared and paid in the same period. The December 31, 2020, separate financial statements for each company appear below.

	Westermaat	Vossenbelt
Revenues	-8,400,000	-4,400,000
Cost of goods sold	4,600,000	3,100,000
Depreciation	986,000	544,000
Amortization	210,000	-
Equity earnings in Vossenbelt	-646,000	-
Net income	-3,250,000	-756,000
Retained earnings 1/1	-5,800,000	-1,800,000
Net income (above)	-3,250,000	-756,000
Dividends declared	300,000	90,000
Retained earnings 12/31	-8,750,000	-2,466,000
Cash	860,000	176,000
Accounts receivable	1,380,000	150,000
Inventory	1,780,000	840,000
Investment in Vossenbelt	4,780,000	-
Equipment	12,000,000	2,800,000
Customer lists	230,000	-
Trademarks	5,000,000	1,700,000
Goodwill	370,000	-
Accounts payable	-1,000,000	-150,000
Long-term debt	-2,650,000	-1,450,000
Common stock	-14,000,000	-1,600,000
Retained earnings 12/31	-8,750,000	-2,466,000
	0	0

Question 6 (4p)

Prepare Westermaats acquisition-date fair-value allocation schedule for its investment in Vossenbelt.

Question 7 (4p)

Show how Westermaat determined its December 31, 2020, Investment in Vossenbelt balance, starting with the book value of Vossenbelt on that date.

Question 8 (11p)

Prepare a worksheet to determine the balances for Westermaats December 31, 2020, consolidated balance sheet and income statement.