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On January 1,2020. Pinnacle Corporation exchanged $3,568,500 cash for 100 percent of the ouistanding voting 5 tock of Strate Corporation. On the acquisition date, Strata

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On January 1,2020. Pinnacle Corporation exchanged $3,568,500 cash for 100 percent of the ouistanding voting 5 tock of Strate Corporation. On the acquisition date, Strata had the following balance sheet: Pinnacie prepared the following fairvalue allocation: At the acquisition date, Suato's buildings hod o to-yeor emoining ife and its licensing egreements were due to weite in 5veors Oo December 31, 2021. Strato's occounts. poyable included an $100,600 current liobility owed to Pichace stato Corporotct cerchincs it. The separate financial statements for the two componies for the yearending December 31, 2021, follow Credit balances are indicated by parentheses. 8. Prepare a worksheet to consolidate the financial information for these two companies. b. Compute the following amounts that would appear on Pinnacle's 2021 separate (nonconsolidated) financlat records it Pinnocies Investment accounting was based on the equity method. - Subsidiary income - Retained eamings, 1/1/21 - Investment in Strata c. What effect does the porent's intemal investment accounting method have on its consolidated financial statements? Complete this question by entering your answers in the tabs below. Prepare a worksheet to consolidate the finandial information for these two companies. (Fon accounts where mulvple consolldations entries are reauired, combine all dabit entiles into one amount and enter this amount in the debit colume of the workseet Prepare a worksheet to consolidate the financial information for these two companies, (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet: Simllarly, combine ai credit entries into one amodit and enter this amount in the credit column of the worksheet. Amounts in the Complete this question by entering your answers in the tabs below. Compute the following amounts that would appear on Pinnacle's 2021 separate (nonconsolidated) finaricial records if Pinnade's investment accounting was based on the equity method. (input all amounts as positive values.) c. What effect does the parent's internal investment accounting method have on its corisolidated financial statements? Complete this question by entering your answers in the tabs below. What effect does the parent's internal investment accountino method bave on its consolidated finandal statements

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