Please answer fully

Problem I. (60 points). Paramount Corporation owns 100 percent of Sacker Company. Paramount acquired Sacker on January 1, 2016, where the fair value of the net assets and book value were the same. The resulting excess fair value was allocated to a trademark for $110,000 (indefinite life), with the remainder allocated to a client list for $400,000 (20-year remaining life at acquisition date). No goodwill resulted from this acquisition.

The following intra-entity transactions occurred in 2019:

Paramount had sold inventory to Sacker in 2018 for $40,000. The inventory cost

Paramount $30,000. At December 31, 2018, Sacker had sold approximately sixty (60) percent of the goods. The remaining inventory was sold to outside customers in 2019.

Paramount sold inventory to Sacker in 2019 for $50,000. The inventory cost Paramount $40,000. At December 31, 2019, Sacker had sold approximately eighty (80) percent of the goods. The remaining inventory was sold to outside customers in 2020.

On March 1, 2018, Paramount transferred Land to Sacker for $280,000; Paramount acquired the land in 2002 for $200,000. Sacker borrowed $280,000 from Paramount as a result of the transfer.

On January 1, 2018, Paramount transferred equipment with a book value of $80,000 to Sacker for $120,000; the equipment has a remaining useful life of ten (10) years. Paramount acquired the equipment at $140,000.

In addition to the intra-entity transactions above, during 2019, Sacker declared and paid a $12,000 dividend; the subsidiary also had net income of $130,000. At January 1, 2019, Sackers equity consisted of common stock $180,000, additional paid-in capital, $20,000, and retained earnings, $140,000.

Instructions:

1. Prepare the 2019 consolidation worksheet entries. Show all of your calculations in good form, properly labeled. You may continue your work on the next page(s). Problem I. Continued.

2. Using the worksheet entries in 1, calculate the consolidated balances for the following

selected accounts:

For the year ended, December 31, 2019

Sales

Cost of Goods Sold

Amortization Expense

Depreciation Expense

Inventory

Equipment

Accumulated Depreciation

Client List

Paramount

(1,400,000)

660,000

130,000

40,000

210,000

440,000

(120,000)

Sacker

(326,000)

110,000

60,000

26,000

190,000

260,000

(100,000)

Worksheet Entries

Dr.

Cr.

Consolidation

Problem I. (60 points). Paramount Corporation owns 100 percent of Sacker Company. Paramount acquired Sacker on January 1, 2016, where the fair value of the net assets and book value were the same. The resulting excess fair value was allocated to a trademark for $110,000 (indefinite life), with the remainder allocated to a client list for $400,000 (20-year remaining life at acquisition date). No goodwill resulted from this acquisition. The following intra-entity transactions occurred in 2019: Paramount had sold inventory to Sacker in 2018 for $40,000. The inventory cost Paramount $30,000. At December 31, 2018, Sacker had sold approximately sixty (60) percent of the goods. The remaining inventory was sold to outside customers in 2019. Paramount sold inventory to Sacker in 2019 for $50,000. The inventory cost Paramount $40,000. At December 31, 2019, Sacker had sold approximately eighty (80) percent of the goods. The remaining inventory was sold to outside customers in 2020. On March 1, 2018, Paramount transferred Land to Sacker for $280,000; Paramount acquired the land in 2002 for $200,000. Sacker borrowed $280,000 from Paramount as a result of the transfer. On January 1, 2018, Paramount transferred equipment with a book value of $80,000 to Sacker for $120,000; the equipment has a remaining useful life of ten (10) years. Paramount acquired the equipment at $140,000. In addition to the intra-entity transactions above, during 2019, Sacker declared and paid a $12,000 dividend; the subsidiary also had net income of $130,000. At January 1, 2019, Sacker's equity consisted of common stock $180,000, additional paid-in capital, $20,000, and retained earnings, $140,000. Instructions: 1. Prepare the 2019 consolidation worksheet entries. Show all of your calculations in good form, properly labeled. You may continue your work on the next page(s). Problem I. Continued. 2. Using the worksheet entries in 1, calculate the consolidated balances for the following selected accounts: For the year ended, December 31, 2019 Paramount Worksheet Entries Dr. Cr. Sacker Consolidation Sales (1,400,000)| (326,000) Cost of Goods Sold 660,000 110,000 Amortization Expense 130,000 60,000 Depreciation Expense 40,000 26,000 Inventory 210,000 190.000 Equipment 440,000 260,000 Accumulated Depreciation (120,000) (100,000) Client List Problem I (60 points). Paramount Corporation owns 100 percent of Sacker Company Paramount acquired Sacker on January 1, 2016, where the fair value of the net assets and book value were the same. The resulting excess fair value was allocated to a trademark for $110,000 (indefinite life), with the remainder allocated to a client list for $400,000 (20-year remaining life at acquisition date). No goodwill resulted from this acquisition. The following intra-cntity transactions occurred in 2012: Paramount had sold inventory to Sacker in 2018 for $40,000. The inventory cost Paramount $30,000. At December 31, 2018, Sacker had sold approximately sixty (60) percent of the goods. The remaining inventory was sold to outside customers in 2012 Paramount sold inventory to Sacker in 2019 for $50,000. The inventory cost Paramount $40,000. At December 31, 2019, Sacker had sold approximately eighty (80) percent of the goods. The remaining inventory was sold to outside customers in 2020. On March 1. 2018, Paramount transferred Land to Sacker for $280,000: Paramount acquired the land in 2002 for $200,000. Sacker borrowed $280,000 from Paramount as a result of the transfer On January 1, 2018, Paramount transferred equipment with a book value of $80,000 to Sacker for $120,000; the equipment has a remaining useful life of ten (10) years. Paramount acquired the equipment at $140,000 In addition to the intra-entity transactions above, during 2019, Sacker declared and paid a $12.000 dividend; the subsidiary also had net income of $130,000. At January 1, 2019, Sacker's equity consisted of common stock S180,000, additional paid-in capital, $20,000, and retained earnings, S140,000. Instructions: 1. Prepare the 2019 consolidation worksheet entries. Show all of your calculations in good form, properly labeled. You may continue your work on the next pages) Problem I. Continued. 2. Using the worksheet entries in I, calculate the consolidated balances for the following selected accounts: For the year ended, December 31, 2019 Paramount Worksheet Entries Dr. Cr. Sacker 1 Comsolidation Sales (1.400.000) 326,000 Cost of Goods Sold 660,000 110.000 Amortization Expense 130.000 60,000 Depreciation Expense 40,000 26.000 Inventory 210,000 190.000 Equipment 440,000 260,000 Accumulated Depreciation (120,000) (100,000) Client List Problem I. (60 points). Paramount Corporation owns 100 percent of Sacker Company. Paramount acquired Sacker on January 1, 2016, where the fair value of the net assets and book value were the same. The resulting excess fair value was allocated to a trademark for $110,000 (indefinite life), with the remainder allocated to a client list for $400,000 (20-year remaining life at acquisition date). No goodwill resulted from this acquisition. The following intra-entity transactions occurred in 2019: Paramount had sold inventory to Sacker in 2018 for $40,000. The inventory cost Paramount $30,000. At December 31, 2018, Sacker had sold approximately sixty (60) percent of the goods. The remaining inventory was sold to outside customers in 2019. Paramount sold inventory to Sacker in 2019 for $50,000. The inventory cost Paramount $40,000. At December 31, 2019, Sacker had sold approximately eighty (80) percent of the goods. The remaining inventory was sold to outside customers in 2020. On March 1, 2018, Paramount transferred Land to Sacker for $280,000; Paramount acquired the land in 2002 for $200,000. Sacker borrowed $280,000 from Paramount as a result of the transfer. On January 1, 2018, Paramount transferred equipment with a book value of $80,000 to Sacker for $120,000; the equipment has a remaining useful life of ten (10) years. Paramount acquired the equipment at $140,000. In addition to the intra-entity transactions above, during 2019, Sacker declared and paid a $12,000 dividend; the subsidiary also had net income of $130,000. At January 1, 2019, Sacker's equity consisted of common stock $180,000, additional paid-in capital, $20,000, and retained earnings, $140,000. Instructions: 1. Prepare the 2019 consolidation worksheet entries. Show all of your calculations in good form, properly labeled. You may continue your work on the next page(s). Problem I. Continued. 2. Using the worksheet entries in 1, calculate the consolidated balances for the following selected accounts: For the year ended, December 31, 2019 Paramount Worksheet Entries Dr. Cr. Sacker Consolidation Sales (1,400,000)| (326,000) Cost of Goods Sold 660,000 110,000 Amortization Expense 130,000 60,000 Depreciation Expense 40,000 26,000 Inventory 210,000 190.000 Equipment 440,000 260,000 Accumulated Depreciation (120,000) (100,000) Client List Problem I (60 points). Paramount Corporation owns 100 percent of Sacker Company Paramount acquired Sacker on January 1, 2016, where the fair value of the net assets and book value were the same. The resulting excess fair value was allocated to a trademark for $110,000 (indefinite life), with the remainder allocated to a client list for $400,000 (20-year remaining life at acquisition date). No goodwill resulted from this acquisition. The following intra-cntity transactions occurred in 2012: Paramount had sold inventory to Sacker in 2018 for $40,000. The inventory cost Paramount $30,000. At December 31, 2018, Sacker had sold approximately sixty (60) percent of the goods. The remaining inventory was sold to outside customers in 2012 Paramount sold inventory to Sacker in 2019 for $50,000. The inventory cost Paramount $40,000. At December 31, 2019, Sacker had sold approximately eighty (80) percent of the goods. The remaining inventory was sold to outside customers in 2020. On March 1. 2018, Paramount transferred Land to Sacker for $280,000: Paramount acquired the land in 2002 for $200,000. Sacker borrowed $280,000 from Paramount as a result of the transfer On January 1, 2018, Paramount transferred equipment with a book value of $80,000 to Sacker for $120,000; the equipment has a remaining useful life of ten (10) years. Paramount acquired the equipment at $140,000 In addition to the intra-entity transactions above, during 2019, Sacker declared and paid a $12.000 dividend; the subsidiary also had net income of $130,000. At January 1, 2019, Sacker's equity consisted of common stock S180,000, additional paid-in capital, $20,000, and retained earnings, S140,000. Instructions: 1. Prepare the 2019 consolidation worksheet entries. Show all of your calculations in good form, properly labeled. You may continue your work on the next pages) Problem I. Continued. 2. Using the worksheet entries in I, calculate the consolidated balances for the following selected accounts: For the year ended, December 31, 2019 Paramount Worksheet Entries Dr. Cr. Sacker 1 Comsolidation Sales (1.400.000) 326,000 Cost of Goods Sold 660,000 110.000 Amortization Expense 130.000 60,000 Depreciation Expense 40,000 26.000 Inventory 210,000 190.000 Equipment 440,000 260,000 Accumulated Depreciation (120,000) (100,000) Client List