On January 1, 2021, Pack Corp. paid $750,000 to purchase 100% of the common stock of Sack Company. On the date Pack acquired Sack (1/1/2021), the book value of Sack was $580,000. (Sack's Common Stock was $400,000, and Retained Earnings was $180,000 on the date of acquisition.) On date of the acquisition Sack's Land was undervalued $35,000; Equipment (20 year life) was undervalued $100,000; Buildings (10 year life) were overvalued $20,000; and Patents (5 year life)were undervalued $15,000.

Part 1: Identify ALL of the elements of the investment. Show the component parts of each element of the investment on the date of acquisition. Show your computations. Clearly label your numbers.

Part II: Prepare an analysis of the book value element updating the balances from the beginning to the end of the year.

Part III: Prepare an analysis of the excess cost element updating the balances from the beginning to the end of the year.

Part IV: Complete the consolidation worksheet. Enter the necessary 12/31/2021 consolidation entries. Label your entries (S,A,I,D,E) in narrow column beside entries. Enter formulas in the consolidation total column to complete the worksheet.