please explain all calculations on consildiated worksheet and requiremnt B thank you!

Following are separate financial statements of Michael Company and Aaron Company as of December 31, 2018 (credit balances indicated by parentheses). Michael acquired all of Aaron's outstanding voting stock on January 1, 2014, by issuing 20,000 shares of its own $1 par common stock. On the acquisition date, Michael Company's stock actively traded at $28 per share. Michael Company Aaron Company 12/31/18 12/31/18 Revenues $ (640,000) $ (384,000 Cost of goods sold 285,000 147,000 Amortization expense 121,800 126,000 Dividend income (5,000) @ Net income s (238,200) $ (111,000) Retained earnings, 1/1/18 $ (944,000) $ (656,000 Net Income (above) (238,200) (111,000) Dividends declared 90,000 5,000 Retained earnings, 12/31/18 $(1,092,200) $ (762,000) Cash $ 152,000 $ 23,800 Receivables 451,000 304,000 Inventory 636,000 288,000 Investment in Aaron Company 560,000 Copyrights 537,000 351,000 Royalty agreements 1,016,000 437,000 Total assets $ 3,346,000 $ 1,403,000 Liabilities $1,153,800) $(511,000) Preferred stock (300,000) Common stock (500,000) (100,000) Additional paid-in capital (300,000) (30,000) Retained earnings, 12/31/18 (1.292,200 (762,000) Total Liabilities and equity $(3,346,000) $(1,403,000) On the date of acquisition, Aaron reported retained earnings of $320,000 and a total book value of $450,000. At that time, its royalty agreements were undervalued by $60,000. This intangible was assumed to have a six-year remaining life with no residual value. Additionally, Aaron owned a trademark with a fair value of $50,000 and a 10-year remaining life that was not reflected on its books Aaron declared and paid dividends in the same period. a. Using the preceding information, prepare a consolidation worksheet for these two companies as of December 31, 2018. b. Assuming that Michael applied the equity method to this investment, what account balances would differ on the parent's individual financial statements? Complete this question by entering your answers in the tabs below. Required A Required B Using the preceding information, prepare a consolidation worksheet for these two companies as of December 31, 2018. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and credit columns should be entered as positive. Negative amounts for the Consolidated Totals column should be entered with a minus sign) Show less ces Accounts Revenues Cost of goods sold Amortization expense Dividend income Net Income MICHAEL COMPANY AND CONSOLIDATED SUBSIDIARY Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Michael Aaron Debit Credit $ (640,000) $ (384,000) 285,000 147.000 121,800 126.000 15,000 (5,000) 0 5,000 $ (238,200) $ (111,000) Consolidated Totals (1,024,000) 432,000 262,800 0 S (329,200) Retained caminas. 1/1 Prev 1 of 1 Next Aaron Debit Credit Totals $ Accounts Revenues Cost of goods sold Amortization expense Dividend income Michael (640,000) $ 285,000 121,800 (5,000) (238,200) $ (384,000) 147,000 126.000 0 (111,000) 15,000 5,000 (1,024,000) 432,000 262,800 0 $ (329,200) Net income S 0 276,000 656,000 Retained earnings, 1/1 (Michael) Retained earnings, 1/1 (Aaron) Net income (above) Dividends declared Retained earnings, 12/31 (944,000) 0 (238,200) 90,000 $ (1,092,200) $ (656,000) (111,000) 5,000 (762,000) (1,220,000) 0 $ (329,200) 90,000 $ (1,459,200) 5,000 $ $ Cash Receivables Inventory Investment in Aaron Co. Copyrights Royalty agreements Trademark 175,000 755,000 918,000 0 276,000 152,000 $ 451,000 630,000 560,000 537,000 1,016,000 0 3,346,000 $ 836,000 23,000 304,000 288,000 0 351,000 437,000 0 1,403,000 20,000 30,000 10,000 5,000 888,000 1,463,000 25,000 $ 4,224,000 Total assets $ $ Liabilities Preferred stock Common stock Additional paid-in capital Retained earnings, 12/31 ah (1.153,800) S (300,000) (500,000) (300,000) (1,092 200) (511,000) 0 (100,000) (30,000) (762,000) 100,000 30,000 (1,664,800) (300,000) (500,000) (300.000) (1.459,200) Prev 1 of 1 Maut a. Using the preceding information, prepare a consolidation worksheet for these two companies as of December 31, 2018. b. Assuming that Michael applied the equity method to this investment, what account balances would differ on the parent's individ financial statements? Complete this question by entering your answers in the tabs below. Book Required A Required B Assuming that Michael applied the equity method to this investment, what account balances would differ on the parent's individual financial statements? rences Equity in Earnings of Aaron Retained Eamings, 1/1/18 Investment in Aaron $ 96,000 $ 1,220,000