On January 1, 2022, the Redder Company exchanged $1,500,000 cash for 100% of the outstanding voting stock of the Lohman Company. On the acquisition date, Lohman Company had net equity consisting of the following: Common Stock Retained Earnings $600,000 750,000 Redder then prepared the following fair value allocations: Equipment, with a remaining life of 10 years was undervalued by $100,000. All other assets and liabilities are fairly reported. During 2022, Lohman Company reported earnings of $160,000 and paid cash dividends totaling $80,000. During 2023, Lohman carned $120,000 and paid dividends in the amount of $50,000. The financial statements for the two companies as of December 31, 2023 is presented on the worksheet, below. Required: complete the worksheet to consolidate the financial information of these two companies as of December 31, 2023 for 10 extra percentage points on Test 1. Redder Company AND CONSOLIDATED SUBSIDIARY Consolidation Worksheet For Year Ending December 31, 2023 Consolidation Entries Income Statement Smith Jones Debit Credit Balances Revenues 15.900.000) (720.000 Cost of goods sold 3,700,000 500,000 Depreciation expense 900,000 200,000 Amortization expense Interest expense Equity earnings in Lohman 400,000 100,000 60,000 40,000 (110.000) Net income (1.950.000 (120.000 Statement of Retained Earnings Retained earnings 1/1 (5,000,000) (330,000) Net income (above) Dividends declared Retained earnings 12:31 550,000 50,000 6.400.000 900.000 (1,550,000) (120,000) Balance Sheet Cash Accounts receivable Inventories Investment in Lehman Equipment (net) Patents Unpatented technology Goodwill Total assets Current liabilities Long-term debt 70,000 140,000 950,000 200,000 1,700,000 780,000 1,630,000 4,060,000 1,730,000 90.000 2,000,000 450,000 400,000 10.900.000 3.300.000 (500,000) (300,000) Common stock Retained earnings 12/31 Total liabilities and equity (1,000,000) (500,000) (3,000,000) (600,000) (6,400,000) 900,000) 10.900.0003,300.000