On January 2, 2018, Company P acquired all of the outstanding voting stock of Company S...

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On January 2, 2018, Company P acquired all of the outstanding voting stock of Company S in exchange for $6,000 in stock. Company P elected to exercise control over Company S as a wholly owned subsidiary with an independent accounting system Both companies have December 31 year ends. At the acquisition date, Company S has a stockholder's equity of $2,500, which includes Retained Earnings of $1,700 Company P pursued the acquisition, in part, to utilize Company S technology and computer software. These items had fair values that differed from their values on Company S books as follows: Asset Book Value Fair Value Remaining Life Patented technology S 140 $ 2,240 7 years Computer software 60 $ 1,260 12 years At December 31 2020, Company S owes Company P $20. Company S remaining identifiable assets and liabilities had acquisiton-date book values that closely approximated fair values. Since acquisition, no assets have been impaired. During the next three years, Company S reported the following income and dividends: Net income Dividends 2018 S 900 $ 150 2019 $ 940 $ 150 2020 $ 975 $ 150 REQUIRED: LABEL EACH STEP 6. 123456 1 2. 3. Prepare the analysis as of acquisition date including unamortized differential at 1/1/18 and through 2020. Calculate the balance in the account Investment in Sub as of 12/31/20. Show all computations Prepare the journal entries Company P recorded with respect to its investment in Company S for the year ended 12/31/20 Separately calculate consolidated net income for 2020 Prepare all necessary elimination entries for the year ended 2020. Complete the consolidated workpapers for the year ended 12/31/20. On January 2, 2018, Company P acquired all of the outstanding voting stock of Company S in exchange for $6,000 in stock. Company P elected to exercise control over Company S as a wholly owned subsidiary with an independent accounting system Both companies have December 31 year ends. At the acquisition date, Company S has a stockholder's equity of $2,500, which includes Retained Earnings of $1,700 Company P pursued the acquisition, in part, to utilize Company S technology and computer software. These items had fair values that differed from their values on Company S books as follows: Asset Book Value Fair Value Remaining Life Patented technology S 140 $ 2,240 7 years Computer software 60 $ 1,260 12 years At December 31 2020, Company S owes Company P $20. Company S remaining identifiable assets and liabilities had acquisiton-date book values that closely approximated fair values. Since acquisition, no assets have been impaired. During the next three years, Company S reported the following income and dividends: Net income Dividends 2018 S 900 $ 150 2019 $ 940 $ 150 2020 $ 975 $ 150 REQUIRED: LABEL EACH STEP 6. 123456 1 2. 3. Prepare the analysis as of acquisition date including unamortized differential at 1/1/18 and through 2020. Calculate the balance in the account Investment in Sub as of 12/31/20. Show all computations Prepare the journal entries Company P recorded with respect to its investment in Company S for the year ended 12/31/20 Separately calculate consolidated net income for 2020 Prepare all necessary elimination entries for the year ended 2020. Complete the consolidated workpapers for the year ended 12/31/20.