Please do the following in excel (show work):

Prepare the book entries on Frans books to account for the investment in Brey under the equity

method for 2015.

Prepare the workpaper elimination entries

Post the workpaper entries to the consolidation worksheet.

Prepare formal Income Statement, Statement of Retained Earnings, and Balance Sheet for

Consolidated entity.

With given information:

At the acquisition date, the fair value of Brey's machinery exceeded its book value by $54,000.

The excess cost will be amortized over the estimated average remaining life of six years.

The fair values of all of Brey's other assets and liabilities were equal to their book values.

At December 31, 2015, Fran's management reviewed the amount attributed to goodwill

as a result of its purchase of Brey's common stock and concluded an impairment loss of $35,000

should be recognized in 2015.

Intercompany Sales/Inventory Transactions

During 2015, Fran purchased merchandise from Brey for $180,000, which included a 100 percent

markup on Brey's cost.

At December 31, 2015, Fran owed Brey $86,000 on these purchases, and $36,000 of this

merchandise remained in Fran's inventory.

Fran Corporation Brey Inc. Income Statement Dr (Cr) Dr (C) Net Sales S3,800,000) $1,500,000) Income from Brey 128,000) 30,000) Gain on Sale of Warehouse Cost of Goods Sold 2,360,000 870.000 Operating Expenses (including depreciation) 1.100.000 440.000 Net Income S (498 90, Retained Earnings Statement (440,000) (56,000) Balance, 1/1/X9 S Net Income (498,000) (190,000) Dividends Paid 40,000 Balance, 12/31/X9 Balance Sheet S 570,000 150,000 Cash Accounts Receivable 0net0 860,000 350,000 410,000 Inventories 1,060,000 Land, Plant, & Equipment 1,320,000 680,000 Accumulated Depreciation (70,000) (210,0000 Investment in Brey 838.000 Total Assets $4278,000 1,380,000 Liabilities & Stodcholders' Equity: $(1,340,000) (594,000) Accounts Payable &Accrued Expenses Common Stock (400,000 Additional Paid-in Capital B00,000) (80,000) Retained Earnings 1973.000) 306, Total Liabilities &Equity S4,278,000) $(1,380,000)