On January 1, 2020, Mona, Inc., acquired 90 percent of Lisa Companys common stock as well as 70 percent of its preferred shares. Mona paid $73,000 in cash for the preferred stock, with a call value of 110 percent of the $50 per share par value. The remaining 30 percent of the preferred shares traded at a $42,000 fair value. Mona paid $580,500 for the common stock. At the acquisition date, the noncontrolling interest in the common stock had a fair value of $64,500. The excess fair value over Lisas book value was attributed to franchise contracts of $46,000. This intangible asset is being amortized over a 40-year period. Lisa pays all preferred stock dividends (a total of $16,000 per year) on an annual basis. During 2020, Lisas book value increased by $118,000.

On January 2, 2020, Mona acquired one-half of Lisa's outstanding bonds payable to reduce the business combination's debt position. Lisa's bonds had a face value of $100,000 and paid cash interest of 6 percent per year. These bonds had been issued to the public to yield 10 percent. Interest is paid each December 31. On January 2, 2020, these bonds had a total $87,320 carrying amount. Mona paid $51,773, indicating an effective interest rate of 5 percent.

On January 3, 2020, Mona sold Lisa fixed assets that had originally cost $108,000 but had accumulated depreciation of $80,000 when transferred. The transfer was made at a price of $136,000. These assets were estimated to have a remaining useful life of 10 years.

The individual financial statements for these two companies for the year ending December 31, 2021, are as follows:

	Mona, Inc.				Lisa Company
Sales and other revenues	$	(516,000	)		$	(216,000	)
Expenses		228,000				128,000
Dividend incomeLisa common stock		(16,200	)			0
Dividend incomeLisa preferred stock		(11,200	)			0
Net income	$	(315,400	)		$	(88,000	)
Retained earnings, 1/1/21	$	(708,000	)		$	(516,000	)
Net income (above)		(315,400	)			(88,000	)
Dividends declaredcommon stock		100,800				18,000
Dividends declaredpreferred stock		0				16,000
Retained earnings, 12/31/21	$	(922,600	)		$	(570,000	)
Current assets	$	138,419			$	508,000
Investment in Lisacommon stock		580,500				0
Investment in Lisapreferred stock		73,000				0
Investment in Lisabonds		50,930				0
Fixed assets		1,108,000				808,000
Accumulated depreciation		(308,000	)			(208,000	)
Total assets	$	1,642,849			$	1,108,000
Accounts payable	$	(412,249	)		$	(128,942	)
Bonds payable		0				(100,000	)
Discount on bonds payable		0				6,942
Common stock		(308,000	)			(208,000	)
Preferred stock		0				(108,000	)
Retained earnings, 12/31/21		(922,600	)			(570,000	)
Total liabilities and equities	$	(1,642,849	)		$	(1,108,000	)

Note: Credits are indicated by parentheses.

1. What consolidation worksheet adjustments would have been required as of January 1, 2020, to eliminate the subsidiary's common and preferred stocks?

2. What consolidation worksheet adjustments would have been required as of December 31, 2020, to account for Mona's purchase of Lisa's bonds?

3. What consolidation worksheet adjustments would have been required as of December 31, 2020, to account for the intra-entity sale of fixed assets?

4. Assume that consolidated financial statements are being prepared for the year ending December 31, 2021. Calculate the consolidated balance for each of the following accounts:

• Franchises
• Fixed Assets
• Accumulated Depreciation
• Expenses

a. What consolidation worksheet adjustments would have been required as of January 1, 2020, to eliminate the subsidiary's common and preferred stocks? b. What consolidation worksheet adjustments would have been required as of December 31, 2020, to account for Mona's purchase of Lisa's bonds? c. What consolidation worksheet adjustments would have been required as of December 31, 2020, to account for the intra-entity sale of fixed assets? (For all requirements, if no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations and final answers to the nearest dollar amount.) Show less view transaction list transaction list No Debit Credit Date Jan 01, 2020 1 Accounts Preferred stock (Mona) Common stock (Mona) Retained earnings (Lisa) Franchises Investment in MonaCommon stock Investment in MonaPreferred stock Noncontrolling interest in Mona 2 Dec 31, 2020 Bonds payable Interest income Loss on retirement of bonds Premium on bonds payable Interest expense Investment in Mona-bonds 3 Dec 31, 2020 Gain on transfer of fixed assets Accumulated depreciation Depreciation expense Fixed assets Req A to C Reg D Assume that consolidated financial statements are being prepared for the year ending December 31, 2021. Calculate the consolidated balance for each of the given accounts. (Round your intermediate calculations and final answers to the nearest dollar amount.) Amount Franchises Fixed Assets Accumulated Depreciation Expenses Req A to C Reg D Assume that consolidated financial statements are being prepared for the year ending December 31, 2021. Calculate the consolidated balance for each of the given accounts. (Round your intermediate calculations and final answers to the nearest dollar amount.) Amount Franchises Fixed Assets Accumulated Depreciation Expenses