Please answer the question on the attach. Thank you

1. On January 1, 2016, Moline Co. paid $80,000 for a 20% interest in Oak Industries. Oak Industries' stockholders' equity amounted to $310,000 on that date. The excess of purchase price over book values was due to an unrecorded patent valued at $90,000 with a 10-year life. During 2016, Oak Industries reported income of $50,000 and paid dividends of $8,000. During 2017, it reported income of $60,000 and dividends of $12,000. Assume that Moline Co. has significant influence over the operations of Oak Industries. Required: a. What is the amount of goodwill? b. What is Equity Income for 2016? c. What is the balance in the Equity Investment account at December 31, 2016? d. What is Equity Income for 2017? e. What is the balance in the Equity Investment account at December 31, 2017? 2. On January 2, 2016, Revolution Co. issued 150,000 new shares of its $1 par value common stock valued at $16 a share for all of Founders, Inc.'s outstanding common shares. The fair value and book value of Founders' identifiable assets and liabilities were the same. Summarized balance sheet information for both companies just before the acquisition on January 2, 2016 is as follows: Cash Inventories Other current assets Land Property, plant & equipment Total Assets Revolution $ 250,000 320,000 600,000 350,000 5,100,000 $6,620,000 Founders $ 180,000 600,000 400,000 500,000 5,000,000 $3,680,000 Accounts payable Notes payable Common stock, $1 par Additional paid-in capital Retained earnings Total Liabilities & Equities $1,800,000 1,800,000 2,000,000 1,000,000 1,020,000 $6,620,000 $ 350,000 1,150,000 1,000,000 350,000 830,000 $3,680,000 Required: Prepare a consolidated balance sheet for Revolution Co. immediately after the business combination. 3. On January 1, 2017, Maddox Company acquired Smoltz Corporation by issuing 46,000 shares of its $1 par common stock with a market value of $11 per share. A building on Smoltz's books was undervalued by $30,000, resulting in annual amortization of $1,500. Also, there was an unrecorded patent valued at $70,000, resulting in annual amortization of $7,000. The separate 2017 financial statements for Maddox and Smoltz are presented below: Required: a. Prepare the journal entry to record the investment in the subsidiary. b. Show the computation of Equity Income for 2017. c. Show the computation of Equity Investment at December 31, 2017. d. Prepare a consolidation worksheet for 2017. Sales revenue Cost of goods sold Gross profit Operating expenses Equity income Net Income Maddox $760,000 (405,000 355,000 (202,400 51,800 $204,400 Retained Earnings, 1/1/17 Net income Dividends Retained Earnings, 12/31/17 $662,300 204,400 (41,200 $825,500 Cash and receivables Inventory Equity investment Property, plant & equipment (Net) Total Assets $199,800 243,450 533,150 745,800 $1,722,200 $161,180 135,090 Accounts payable Accrued liabilities Notes payable Common stock Additional paid-in capital Retained Earnings, 12/31/17 Total Liabilities and Equities $ 41,300 56,400 0 93,200 705,800 825,500 $1,722,200 $ 42,980 50,070 90,000 33,600 43,000 341,250 $600,900 ) ) ) Smoltz $420,000 (266,000 154,000 (93,700 _______ $ 60,300 $305,600 60,300 (24,650 $341,250 304,630 $600,900 ) ) ) 4. Parent purchased Subsidiary on January 1, 2016. The excess of investment cost over book value of $180,000 was allocated entirely to a 10-year royalty agreement. The Subsidiary's retained earnings balance on the date of acquisition was $1,508,900. The Parent uses the cost method to account for its pre-consolidation investment in the Subsidiary. Subsidiary regularly sells merchandise to Parent. In 2017, inter-company sales amounted to $96,230, with $22,450 of deferred profit remaining in ending inventory. Year-end intercompany receivables/payables amounted to $30,400. In 2018, inter-company sales amounted to $99,450 with $29,330 of deferred profit remaining in ending inventory. Year-end inter-company receivables/payables amounted to $42,800 Financial statements of Parent and Subsidiary for the year ended December 31, 2018 are presented below. Sales revenue Cost of goods sold Gross profit Operating expenses Income (loss) from subsidiary Net Income Retained Earnings, 1/1/18 Net income Dividends Retained Earnings, 12/31/18 Parent $ 8,604,000 (5,964,700 2,639,300 (1,434,600 76,070 $ 1,280,770 $ 3,672,310 1,280,770 (285,580 $ 4,667,500 ) ) ) Subsidiary $2,618,700 (1,531,270 1,087,430 (756,770 _________ $ 330,660 $1,940,780 330,660 (76,070 $2,195,370 Cash and receivables Inventory Equity investment Property, plant & equipment (Net) Total Assets $ 1,757,420 1,603,610 2,118,070 8,805,060 $14,284,160 $1,140,790 988,220 Accounts payable Accrued liabilities Notes payable Common stock Additional paid-in capital Retained Earnings, 12/31/18 Total Liabilities and Equities $ 1,247,660 1,402,050 3,550,000 1,502,640 1,914,310 4,667,500 $14,284,160 $ 233,720 406,650 723,600 114,130 315,040 2,195,370 $3,988,510 ) ) ) 1,859,500 $3,988,510 Required: a. Prepare a schedule showing the computation of the [ADJ] consolidating entry necessary for 2018. b. Prepare a consolidation worksheet for 2018. 5. Assume that, on January 1, 2015, a parent company acquired a 75% interest in its subsidiary for a purchase price that was $150,000 over the book value of the subsidiary's Stockholders' Equity on the acquisition date. The parent uses the equity method to account for its investment in the subsidiary. The parent assigned the acquisition-date AAP as follows: AAP Items PPE Initial Fair Value 150,000 Useful Life (years) 15 Assume that the parent sells inventory to the subsidiary (downstream) which includes that inventory in products that it, ultimately, sells to customers outside of the controlled group. You have compiled the following data as of 2017 and 2018: Transfer price for inventory sale Cost of goods sold Gross profit % inventory remaining Gross profit deferred 2017 $83,300 (69,300 $17,000 20% $ 3,400 EOY Receivable/Payable $15,000 ) 2018 $124,600 (99,600 $ 25,000 30% $ 7,500 ) $ 20,000 The inventory not remaining at the end of the year has been sold outside of the controlled group. The parent and the subsidiary report the following financial statements at December 31, 2018: Income Statement Sales Cost of goods sold Gross Profit Income (loss) from subsidiary Operating expenses Net income Parent $4,520,000 (2,710,000 1,810,000 129,400 (953,100 $ 986,300 ) ) Subsidiary $527,600 (250,400 277,200 (89,200 $188,000 ) ) Statement of Retained Earnings BOY Retained Earnings Net income Dividends EOY Retained Earnings Parent $5,839,600 986,300 (87,900 $6,738,000 ) Subsidiary $1,323,500 188,000 (16,000 $1,495,500 ) Balance Sheet Assets: Cash Accounts receivable Inventory Equity Investment PPE, net Liabilities and Stockholders' Equity: Current Liabilities Long-term Liabilities Common Stock APIC Retained Earnings Parent Subsidiary $ 787,300 1,049,300 1,245,100 1,315,500 6,453,200 $10,850,400 $ 199,700 204,100 194,600 $ 750,900 2,006,600 385,400 969,500 6,738,000 $10,850,400 $ 104,800 156,300 41,700 116,800 1,495,500 $1,915,100 1,316,700 $1,915,100 Required: a. Compute the EOY Equity Investment balance of $1,315,500 (4 years subsequent to the acquisition). b. Compute the EOY noncontrolling interest equity balance. c. Prepare the consolidation spreadsheet. 1. On January 1, 2016, Moline Co. paid $80,000 for a 20% interest in Oak Industries. Oak Industries' stockholders' equity amounted to $310,000 on that date. The excess of purchase price over book values was due to an unrecorded patent valued at $90,000 with a 10-year life. During 2016, Oak Industries reported income of $50,000 and paid dividends of $8,000. During 2017, it reported income of $60,000 and dividends of $12,000. Assume that Moline Co. has significant influence over the operations of Oak Industries. Required: a. What is the amount of goodwill? b. What is Equity Income for 2016? c. What is the balance in the Equity Investment account at December 31, 2016? d. What is Equity Income for 2017? e. What is the balance in the Equity Investment account at December 31, 2017? 2. On January 2, 2016, Revolution Co. issued 150,000 new shares of its $1 par value common stock valued at $16 a share for all of Founders, Inc.'s outstanding common shares. The fair value and book value of Founders' identifiable assets and liabilities were the same. Summarized balance sheet information for both companies just before the acquisition on January 2, 2016 is as follows: Cash Inventories Other current assets Land Property, plant & equipment Total Assets Revolution $ 250,000 320,000 600,000 350,000 5,100,000 $6,620,000 Founders $ 180,000 600,000 400,000 500,000 2,000,000 $3,680,000 Accounts payable Notes payable Common stock, $1 par Additional paid-in capital Retained earnings Total Liabilities & Equities $800,000 1,800,000 2,000,000 1,000,000 1,020,000 $6,620,000 $ 350,000 1,150,000 1,000,000 350,000 830,000 $3,680,000 Required: Prepare a consolidated balance sheet for Revolution Co. immediately after the business combination. 3. On January 1, 2017, Maddox Company acquired Smoltz Corporation by issuing 46,000 shares of its $1 par common stock with a market value of $11 per share. A building on Smoltz's books was undervalued by $30,000, resulting in annual amortization of $1,500. Also, there was an unrecorded patent valued at $70,000, resulting in annual amortization of $7,000. The separate 2017 financial statements for Maddox and Smoltz are presented below: Required: a. Prepare the journal entry to record the investment in the subsidiary. b. Show the computation of Equity Income for 2017. c. Show the computation of Equity Investment at December 31, 2017. d. Prepare a consolidation worksheet for 2017. Sales revenue Cost of goods sold Gross profit Operating expenses Equity income Net Income Maddox $760,000 (405,000 355,000 (202,400 51,800 $204,400 Retained Earnings, 1/1/17 Net income Dividends Retained Earnings, 12/31/17 $662,300 204,400 (41,200 $825,500 Cash and receivables Inventory Equity investment Property, plant & equipment (Net) Total Assets $199,800 243,450 533,150 745,800 $1,722,200 $161,180 135,090 Accounts payable Accrued liabilities Notes payable Common stock Additional paid-in capital Retained Earnings, 12/31/17 Total Liabilities and Equities $ 41,300 56,400 0 93,200 705,800 825,500 $1,722,200 $ 42,980 50,070 90,000 33,600 43,000 341,250 $600,900 ) ) ) Smoltz $420,000 (266,000 154,000 (93,700 _______ $ 60,300 $305,600 60,300 (24,650 $341,250 304,630 $600,900 ) ) ) 4. Parent purchased Subsidiary on January 1, 2016. The excess of investment cost over book value of $180,000 was allocated entirely to a 10-year royalty agreement. The Subsidiary's retained earnings balance on the date of acquisition was $1,508,900. The Parent uses the cost method to account for its pre-consolidation investment in the Subsidiary. Subsidiary regularly sells merchandise to Parent. In 2017, inter-company sales amounted to $96,230, with $22,450 of deferred profit remaining in ending inventory. Year-end intercompany receivables/payables amounted to $30,400. In 2018, inter-company sales amounted to $99,450 with $29,330 of deferred profit remaining in ending inventory. Year-end inter-company receivables/payables amounted to $42,800 Financial statements of Parent and Subsidiary for the year ended December 31, 2018 are presented below. Sales revenue Cost of goods sold Gross profit Operating expenses Income (loss) from subsidiary Net Income Retained Earnings, 1/1/18 Net income Dividends Retained Earnings, 12/31/18 Parent $ 8,604,000 (5,964,700 2,639,300 (1,434,600 76,070 $ 1,280,770 $ 3,672,310 1,280,770 (285,580 $ 4,667,500 ) ) ) Subsidiary $2,618,700 (1,531,270 1,087,430 (756,770 _________ $ 330,660 $1,940,780 330,660 (76,070 $2,195,370 Cash and receivables Inventory Equity investment Property, plant & equipment (Net) Total Assets $ 1,757,420 1,603,610 2,118,070 8,805,060 $14,284,160 $1,140,790 988,220 Accounts payable Accrued liabilities Notes payable Common stock Additional paid-in capital Retained Earnings, 12/31/18 Total Liabilities and Equities $ 1,247,660 1,402,050 3,550,000 1,502,640 1,914,310 4,667,500 $14,284,160 $ 233,720 406,650 723,600 114,130 315,040 2,195,370 $3,988,510 ) ) ) 1,859,500 $3,988,510 Required: a. Prepare a schedule showing the computation of the [ADJ] consolidating entry necessary for 2018. b. Prepare a consolidation worksheet for 2018. 5. Assume that, on January 1, 2015, a parent company acquired a 75% interest in its subsidiary for a purchase price that was $150,000 over the book value of the subsidiary's Stockholders' Equity on the acquisition date. The parent uses the equity method to account for its investment in the subsidiary. The parent assigned the acquisition-date AAP as follows: AAP Items PPE Initial Fair Value 150,000 Useful Life (years) 15 Assume that the parent sells inventory to the subsidiary (downstream) which includes that inventory in products that it, ultimately, sells to customers outside of the controlled group. You have compiled the following data as of 2017 and 2018: Transfer price for inventory sale Cost of goods sold Gross profit % inventory remaining Gross profit deferred 2017 $83,300 (69,300 $17,000 20% $ 3,400 EOY Receivable/Payable $15,000 ) 2018 $124,600 (99,600 $ 25,000 30% $ 7,500 ) $ 20,000 The inventory not remaining at the end of the year has been sold outside of the controlled group. The parent and the subsidiary report the following financial statements at December 31, 2018: Income Statement Sales Cost of goods sold Gross Profit Income (loss) from subsidiary Operating expenses Net income Parent $4,520,000 (2,710,000 1,810,000 129,400 (953,100 $ 986,300 ) ) Subsidiary $527,600 (250,400 277,200 (89,200 $188,000 ) ) Statement of Retained Earnings BOY Retained Earnings Net income Dividends EOY Retained Earnings Parent $5,839,600 986,300 (87,900 $6,738,000 ) Subsidiary $1,323,500 188,000 (16,000 $1,495,500 ) Balance Sheet Assets: Cash Accounts receivable Inventory Equity Investment PPE, net Liabilities and Stockholders' Equity: Current Liabilities Long-term Liabilities Common Stock APIC Retained Earnings Parent Subsidiary $ 787,300 1,049,300 1,245,100 1,315,500 6,453,200 $10,850,400 $ 199,700 204,100 194,600 $ 750,900 2,006,600 385,400 969,500 6,738,000 $10,850,400 $ 104,800 156,300 41,700 116,800 1,495,500 $1,915,100 1,316,700 $1,915,100 Required: a. Compute the EOY Equity Investment balance of $1,315,500 (4 years subsequent to the acquisition). b. Compute the EOY noncontrolling interest equity balance. c. Prepare the consolidation spreadsheet