Peerless acquires 85% of Special Foods outstanding stock for

$357,000, an amount equal to 85% of the fair value of Specials net

assets on January 1, 20X1. On this date, the fair values of Specials

individual assets and liabilities are equal to their book value.

Specials Common Stock on January 1, 20X1 was $250,000 and its

Retained Earnings at January 1, 20X1 was $170,000.

Specials Accumulated Depreciation at time of acquisition was $250,000.

During 20X1

Separate Operating Income, Peerless $150,000

Dividends, Peerless $ 40,000

Net Income, Special Foods $ 60,000

Dividends, Special Foods $ 25,000

please provide completed Book Value Calculations Worksheet, Journal Entry Form & Consolidated Financial Statements Worksheet

Book Value Calculations Initial Year of Ownership - 12/31/X1 Common Stock Retained Earnings + Value = + Original Book Value + = + + Net Income + + + = + - Dividends Ending Book Value = Initial Year of Ownership - 12/31/X1 Account Debit Credit Consolidated December 31, 20X1. Initial Year of Ownership. 85% acquisition of Book Value Consolidation Entries Peerless Special DR CR * Income Statement + Sales 527,000 225.000 Less: COGS (230.000) (105,000) Less:Depreciation Expense (75,000) (25.000) 1 Less: Other Expenses (72.000) (35.000 * Income from Special Foods 51.000 - Consolidated Net Income 201,000 60,000 + NCI in Net Income - Controlling Interest in Net Income 201,000 60,000 Statement of Retained Earnings Beginning Balance 389,750 170,000 - Net Income 201,000 60,000 * Less:Dividends Declared (40,000) (25,000 * Ending Balance 550.750 205,000 * Balance Sheet =Cash 194,000 130,000 - Accounts Receivable 150,000 125.000 * Inventory 220,000 155,000 * Investment in Special Foods 386.750 Land 175,000 50,000 * Buildings & Equipment 900,000 560,000 * Less:Accumulated Depreciation (525.000) (275,000) * Total Assets 1,500.750 745,000 * Accounts Payable 200.000 150,000 Bonds Payable 250,000 140,000 - Common Stock 500,000 250.000 # Retained Earnings 550,750 205,000 - NCI in NA of Special Foods Total Liabilities & Equity 1.500.750 745,000