On January 1, 2020 the Y and V Companies had the following balance sheets CASH ACCOUNTS RECEIVABLE EQUIPMENT ACCUMULATED DEP. EQUIPMENT BUILDING ACCUMULATED DEP. BUILDING 1,000,000 1,000,000 1,000,000 -400,000 1,000,000 -300,000 20,000 20,000 20,000 -8000 20,000 -4000 TOTAL ASSETS: 3,300,000 68,000 ACCOUNTS PAYABLE 1,000,000 20,000 COMMON STOCK $1 PAR ADDITIONAL PAID IN CAPITAL C/S RETAINED EARNINGS 1,000,000 1,000,000 300,000 20,000 20,000 8000 On January 2nd Y acquired 75% of the voting stock of V by issuing (selling) 2000 shares of its stock. On January 2nd Y stock was selling for $65 per share. On January 2nd V's assets had the following fair market value equipment $9,000 LIFE remaining 10 YEARS NO SALVAGE building $21,000 LIFE remaining 20 YEARS NO SALVAGE patent $10,000 LIFE remaining 5 YEARS NO SALVAGE customer list $6,000 LIFE remaining 5 YEARS NO SALVAGE Note: Y's equipment and building also have 10 and 20 remaining year life with no salvage On December 31st 2020 Y and V had the following financial statements: Service revenue depreciation exp Eq. depreciation exp Bld. investment income a net income 150,000 60000 35000 14,000 1200 800 b 12,000 CASH 1,050,000 ACCOUNTS RECEIVABLE 1,000,000 EQUIPMENT 1,000,000 ACCUMULATED DEP. EQUIPMEN -460,000 BUILDING 1,000,000 ACCUMULATED DEP. BUILDING -335,000 INVESTMENT IN V TOTAL ASSETS: 23,000 20,000 20,000 -8800 20,000 -5200 69,000 ACCOUNTS PAYABLE 1,000,000 20,000 COMMON STOCK $1 PARE ADDITIONAL PAID IN CAPITAL C/F RETAINED EARNINGS 20,000 20,000 9000 NOTE: THE ONLY STOCK TRANSACTION Y HAD IN 2020 WAS THE PURCHASE OF V Hint: Don't forget about dividends REQUIRED: A) MAKE ANY NECESSARY JOURNAL ENTRIES IN 2020 BY Y DUE TO ITS INVESTMENT IN V Don't forget to tell me which method (initial value [cost], partial equity or full equity) you are using B) MAKE ANY NECESSARY WORKSHEET ENTRIES NEEDED IN 2020 C) PREPARE A CONSOLIDATED INCOME STATEMENT FOR 2020 D) PREPARE A CONSOLIDATED BALANCE SHEET 12/31/2020 On January 1, 2020 the Y and V Companies had the following balance sheets CASH ACCOUNTS RECEIVABLE EQUIPMENT ACCUMULATED DEP. EQUIPMENT BUILDING ACCUMULATED DEP. BUILDING 1,000,000 1,000,000 1,000,000 -400,000 1,000,000 -300,000 20,000 20,000 20,000 -8000 20,000 -4000 TOTAL ASSETS: 3,300,000 68,000 ACCOUNTS PAYABLE 1,000,000 20,000 COMMON STOCK $1 PAR ADDITIONAL PAID IN CAPITAL C/S RETAINED EARNINGS 1,000,000 1,000,000 300,000 20,000 20,000 8000 On January 2nd Y acquired 75% of the voting stock of V by issuing (selling) 2000 shares of its stock. On January 2nd Y stock was selling for $65 per share. On January 2nd V's assets had the following fair market value equipment $9,000 LIFE remaining 10 YEARS NO SALVAGE building $21,000 LIFE remaining 20 YEARS NO SALVAGE patent $10,000 LIFE remaining 5 YEARS NO SALVAGE customer list $6,000 LIFE remaining 5 YEARS NO SALVAGE Note: Y's equipment and building also have 10 and 20 remaining year life with no salvage On December 31st 2020 Y and V had the following financial statements: Service revenue depreciation exp Eq. depreciation exp Bld. investment income a net income 150,000 60000 35000 14,000 1200 800 b 12,000 CASH 1,050,000 ACCOUNTS RECEIVABLE 1,000,000 EQUIPMENT 1,000,000 ACCUMULATED DEP. EQUIPMEN -460,000 BUILDING 1,000,000 ACCUMULATED DEP. BUILDING -335,000 INVESTMENT IN V TOTAL ASSETS: 23,000 20,000 20,000 -8800 20,000 -5200 69,000 ACCOUNTS PAYABLE 1,000,000 20,000 COMMON STOCK $1 PARE ADDITIONAL PAID IN CAPITAL C/F RETAINED EARNINGS 20,000 20,000 9000 NOTE: THE ONLY STOCK TRANSACTION Y HAD IN 2020 WAS THE PURCHASE OF V Hint: Don't forget about dividends REQUIRED: A) MAKE ANY NECESSARY JOURNAL ENTRIES IN 2020 BY Y DUE TO ITS INVESTMENT IN V Don't forget to tell me which method (initial value [cost], partial equity or full equity) you are using B) MAKE ANY NECESSARY WORKSHEET ENTRIES NEEDED IN 2020 C) PREPARE A CONSOLIDATED INCOME STATEMENT FOR 2020 D) PREPARE A CONSOLIDATED BALANCE SHEET 12/31/2020