part B and D

part B and D

part C as well

20. Percy Footwear acquired all the voting stock of Simali Inc. at the beginning of 2016. The acquisition cost was $400,000, and Simali's book value at that time consisted of $25,000 in capital stock and $75,000 in retained earnings. Revaluation information for Simali's identifiable net assets is as follows: Plant assets with a 20-year remaining life, straight-line, were overvalued by $80,000 Inventory (sold in 2016) was overvalued by $20,000 Previously unrecorded indefinite life developed technology was valued at $150,000; impairment to the beginning of 2020 was $10,000, and there is no impairment for 2020. Goodwill was not impaired as of the beginning of 2020; impairment in 2020 was $25,000. It is now the end of 2020 (five years after the acquisition). Simali's retained earnings at the beginning of 2020 is $125,000, and it reports net income of $45,000 for 2020. It declares no dividends. Percy uses the complete equity method to report its investment in Simali on its own books. Simali sells merchandise to Percy on a regular basis, at a markup of 20 percent on cost. Total sales made to Percy in 2020 were $200,000. Percy's beginning inventory balance has $12,000 in merchandise purchased from Simali. Percy's ending inventory balance has $18,000 in merchandise purchased from Simali. Required a. Calculate equity in net income for 2020, reported on Percy's books. b. Calculate the December 31, 2020 balance for investment in Simali, reported on Percy's books. c. Calculate the original balance for goodwill, reported for this acquisition d. Prepare the consolidation eliminating entries (C), (I), (E), (R), and (O) for 2020. 20. Percy Footwear acquired all the voting stock of Simali Inc. at the beginning of 2016. The acquisition cost was $400,000, and Simali's book value at that time consisted of $25,000 in capital stock and $75,000 in retained earnings. Revaluation information for Simali's identifiable net assets is as follows: Plant assets with a 20-year remaining life, straight-line, were overvalued by $80,000 Inventory (sold in 2016) was overvalued by $20,000 Previously unrecorded indefinite life developed technology was valued at $150,000; impairment to the beginning of 2020 was $10,000, and there is no impairment for 2020. Goodwill was not impaired as of the beginning of 2020; impairment in 2020 was $25,000. It is now the end of 2020 (five years after the acquisition). Simali's retained earnings at the beginning of 2020 is $125,000, and it reports net income of $45,000 for 2020. It declares no dividends. Percy uses the complete equity method to report its investment in Simali on its own books. Simali sells merchandise to Percy on a regular basis, at a markup of 20 percent on cost. Total sales made to Percy in 2020 were $200,000. Percy's beginning inventory balance has $12,000 in merchandise purchased from Simali. Percy's ending inventory balance has $18,000 in merchandise purchased from Simali. Required a. Calculate equity in net income for 2020, reported on Percy's books. b. Calculate the December 31, 2020 balance for investment in Simali, reported on Percy's books. c. Calculate the original balance for goodwill, reported for this acquisition d. Prepare the consolidation eliminating entries (C), (I), (E), (R), and (O) for 2020