Parent Co. acquires 77 percent of the 100,000 outstanding shares of Beta Inc. for $12.30 per share on January 1, 2018. The remaining 23 percent of Beta's shares were also traded for $12.30 per share

before and after the acquisition date. At the acquisition date, Beta reported common stock of $520,000, additional paid-in-capital of $200,000, and retained earnings of $210,000. An appraisal made on that date determined that all book values reflected the fair values of Beta's underlying accounts except the following assets:

Buildings, net (10-year remaining life) with a book value of $500,000 and fair value of $560,000

Equipment, net (8-year remaining life) with a book value of $300,000 and fair value of $220,000

Un-patented Technology (5-year remaining life) with a fair value of $80,000.

Parent applies the equity method to maintain the Investment in Subsidiary account. See the companies' financial statements for the year ending December 31, 2021 in the consolidation worksheet provided.

Credit balances are indicated by parentheses.

Required:

1. Determine the total amount of goodwill from the acquisition and what amounts are

allocated to controlling interest and non-controlling interest?

2. Determine the annual excess amortization recognized in connection with the acquisition.

3. Given the information provided, determine all entries made to the Investment account in

Parent's book during 2021. Show the t-account, the beginning Investment balance on January 1,

2021, all entries posted during 2021, and the ending balance on December 31, 2021.

4. Complete the worksheet provided to consolidate these two companies as of December 31, 2021.

Do the following:

A. Prepare the consolidation entries. Label your entries in the worksheet.

B. Determine the subsidiary's net income attributable to non-controlling interest.

C. Determine the ending balance of the non-controlling interest.

D. Determine the consolidated totals

Revenues Operating expenses Equity Income Separate company net income Consolidated net income Net income to NCI Net income to Pearson Retained earnings, 1/1 Net income Dividend declared Retained earnings, 12/31 Current assets Land Buildings {net} Equipment {net} Investment in Subsidiary Unpatented Technology Goodwill Total assets Liabilities Common stock Additional paid-in-ca pital Retained earnings, 12/31 NCI in Sergeant, 1/1 NCI in Sergeant, 12/31 Total liabilities and equities Pa rent 5 {570,000} 5 410,000 {110.880} {270,330} {1,434,030} {270,330} 150,000 {1,544,910} 294,000 240,000 990,000 630,000 1,064,9 10 3,213,9 10 {500,000} {724,000} {450,000} {1,544,910} {3,213,910} Beta {252,000} 95,000 {155,000} {300,000} {155,000} 45,000 {411,000} 300,000 200,000 320,000 511,000 1,331,000 {200,000} {520,000} {200,000} {411,000} {1,331,000}