Part A (use a separate tab in the Excel spreadsheet for this section and label it as Part A)

Make sure the A1 cell in this tab has your full name.

1.Calculate the total Goodwill of Sundar Company and allocate it between the Controlling Interest and the Non-Controlling Interest.

2.Calculate the balance in Investment in Sundar account on 12/31/2017.

3.Prepare the Equity Method journal entries for 2018.

4.Based on your answer in (2), and the Equity Method journal entries in (3), prepare the T-account for Investment in Sundar and calculate the balance in this account on 12/31/2018. Your answer should match the number shown on Pichai Company's Balance Sheet ($1,420,000)

5.Based on the Equity Method journal entries in (3) above, calculate the balance in Equity in Earnings of Sundar. You answer should match what is shown in the Income Statement of Pichai Company ($124,000)

6.Calculate the Net Income Attributable to Noncontrolling Interest for 2018. You need this number to do the worksheet in Part B.

7.Calculate the balance in Non-Controlling Interest on 12/312018.

Part B: (do this section in a separate tab and label it as Part B).

Using Excel, prepare a worksheet to consolidate the separate financial statements of Pichai and Sundar. The worksheet should be in proper format and all consolidation journal entries should be labelled properly in the worksheet (*G, TI, G, S, A, I, D, E). You can use Exhibit 5.4 or Exhibit 5.5 in the text as a guide.

After completing the worksheet, make sure the balance in Investment in Sundar account is equal to zero in the Consolidated Balance Sheet. Program the Investment in Sundar cell in the Consolidated Balance Sheet (last column) so that it keeps a running total of the balance in that account as you are doing the worksheet journal entries. After you have completed all the worksheet journal entries, the cell should show a value of zero, if you did everything correctly. If it does not show zero, go back and check where you made a mistake.

Also, after you have completed the worksheet, the balance in the Non-Controlling Interest account shown on the Consolidated Balance Sheet should match the answer you got in Part A, # 7.