On January 1, 2020, Mark Company acquired 100% of Deriva Company in exchange for $2,000,000. The acquisition agreement also contained a contingent consideration clause to which Parrot assigned a fair value of $100,000. Sun's book value on the acquisition date was $800,000; however Equipment with a 5 year life was undervalued by $100,000. Also, Deriva held a patent valued at $700,000, although there was no book value for this asset because the cost of developing the patent had been expensed as R&D when incurred. The patented technology was expected to produce revenues for 10 years. Any remaining excess of the fair value of the acquisition over the fair value of identifiable assets and liabilities was attributed to Goodwill.

1. The "Fair Value Analysis" which determines the total fair value of the acquisition, and then allocates this amount to the fair value of the specific assets and liabilities acquired.

2. The consolidating Journal Entries necessary to complete the Consolidation Worksheet, and

3. The Consolidation Worksheet as of December 31, 2021.