Plea Plea

Big Co acquired 80% of the common Stock of Little Co. on 1/1/22 for $200,000. The fair value of the NC Interest on that date was $50,000. Little's book value on that date was $250,000, and all assets and liabilities had fair values equal to book value. In 2022, Little reported earnings of $30,000 and paid dividends of $10,000 In 2023 Little reported earnings of $40,000 and paid dividends of $15,000. The trial balances for 1/1/22, 12/31/22, and 12/31/23 are given below. Required: 1. Prepare appropriate equity method entries for each year 2. Prepare elimination entries at 1/1/22 and complete the "Consolidation at acquisition" (1/1/22) worksheet 3. Prepare elimination entries at12/31/23 and complete the "Consolidation at acquisition" (12/31/23) worksheet 4. Prepare elimination entries at12/31/22 and complete the "Consolidation at acquisition" (12/31/22) worksheet You HAVE to "work down" the Big and Little columns in the 12/31/22 worksheet to get the ending R/E values to plug into the 12/31/23 worksheet! Note that as you complete the worksheet the values "autofill" in the yellow cells immediately below.