On January 1st, 2022, the Dumbledore and Voldomort Companies had the following Balance Sheets: Dumbledore Voldomort

cash 20000 400000

equipment 40000 110000

accumulated dep.Equipment 10000 20000

Building 100000 200000

accumulated dep. Building 10000 40000

land 90000 800000

accounts payable 30000 300000

inventory 50000 550000

accounts receivable 40000 500000

common stock $1 par 10000 100000

apic 90000 1000000

retained earnings 190000 1100000

total assets 320000 2500000

On January 2nd, Voldomort acquired 9000 shares (90%) of Dumbledore's stock by issuing 20,000 shares of its common stock to the owners of Dumbledore.

On January 2nd, Voldomort's stock was selling for $50 per share.

Additional information is as follows:

FAIR MARKET VALUE OF DUMBLEDORE'S ASSETS

Accounts receivable $ 40,000.00

inventory $ 50,000.00

equipment $ 70,000.00

land $ 70,000.00

in process R&D $ 30,000.00

Customer list $ 40,000.00

building $ 70,000.00

Both Dumbledore's and Voldomorts' buildings have a 10-year life straight line, no salvage

Both Dumbledore's and Voldomorts' equipment have a 5-year life straight line, no salvage.

REQUIRED:

1) Make the journal entry Voldomort makes when it acquires Dumbledore's stock

2) Make the journal entry Dumbledore makes when its stock is acquired by Voldomort

3) Make the necessary worksheet entries for the consolidation

4) Prepare a consolidated balance sheet on January 2nd 2022