On January 1, 2023, Pack Corp. paid $750,000 to purchase 100% of the common stock of Sack Company. On the date Pack acquired Sack (1/1/2023), 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 the date of the acquisition Sack's Land was undervalued at $35,000; Equipment (20-year life) was undervalued at $100,000; Buildings (10-year life) were overvalued at $20,000; and Patents (5-year life)were undervalued at $15,000. Part 1: Identify ALL of the elements of the investment.

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 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.

\begin{tabular}{|c|c|c|c|c|c|} \hline & \multirow{2}{*}{12/31/2023PackCompany} & \multirow{2}{*}{12/31/2023SackCompany} & \multicolumn{2}{|c|}{ Consolidation Entries } & \multirow{2}{*}{12/31/2023Consolidated} \\ \hline & & & Debit & Credit & \\ \hline \multicolumn{6}{|l|}{ ncome Statement } \\ \hline Revenues & (800,000) & (450,000) & & & \\ \hline Cost of Goods Sold & 360,000 & 210,000 & & & \\ \hline Depreciation Expense & 180,000 & 40,000 & & & \\ \hline \multicolumn{6}{|l|}{ Amortization Expense } \\ \hline Pperating Expenses & 168,000 & 50,000 & & & \\ \hline Euity in Net Income of Sack & (144,000) & & & & \\ \hline Net Income & (236,000) & (150,000) & & & \\ \hline \multicolumn{6}{|l|}{ tatement of Retained Earnings } \\ \hline Retained Earnings 1/1 & (838,000) & (180,000) & & & \\ \hline Net Income (above) & (236,000) & (150,000) & & & \\ \hline Dividends Declared & 120,000 & 80,000 & & & \\ \hline Retained Earnings 12/31 & (954,000) & (250,000) & & & \\ \hline \multicolumn{6}{|l|}{ Balance Sheet } \\ \hline Uurrent Assets & 545,000 & 400,000 & & & \\ \hline nvestment in Sack & 814,000 & & & & \\ \hline Patents & 108,000 & & & & \\ \hline and & 320,000 & 80,000 & & & \\ \hline quipment-net & 600,000 & 400,000 & & & \\ \hline Buildings-net & 340,000 & 230,000 & & & \\ \hline \multicolumn{6}{|l|}{ Goodwill } \\ \hline Total Assets & 2,727,000 & 1,110,000 & & & \\ \hline Current Liabilities & (300,000) & (240,000) & & & \\ \hline ong-term Liabilities & (473,000) & (220,000) & & & \\ \hline Common Stock & (1,000,000) & (400,000) & & & \\ \hline Retained Earnings-above & (954,000) & (250,000) & & & \\ \hline Total Liabilities \& Equities & (2,727,000) & (1,110,000) & & & \\ \hline \end{tabular}