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Please solve and show calculation Consolidated Worksheet Preparation You will be creating and entering formulas to complete four worksheets. The first objective is to demonstrate
Please solve and show calculation
Consolidated Worksheet Preparation You will be creating and entering formulas to complete four worksheets. The first objective is to demonstrate the effect of different methods of accounting for the investments (equity, initial value, and partial equity) on the parent company's trial balance and on the consolidated worksheet subsequent to acquisition. The second objective is to show the effect on consolidated balances and key financial ratios of recognizing a goodwill impairment loss. The project requires preparation of the following four separate worksheets: a. Consolidated information worksheet (follows). b. Equity method consolidation worksheet. c. Initial value method consolidation worksheet. d. Partial equity method consolidation worksheet. In formulating your solution, each worksheet should link directly to the first worksheet. Also, feel free to create supplemental schedules to enhance the capabilities of your worksheet. Project Scenario Pecos Company acquired 100 percent of Suaro's outstanding stock for $1,450,000 cash on January 1, 2020, when Suaro had the following balance sheet: At the acquisition date, the fair values of each identifiable asset and liability that differed from book value were as follows: Project Scenario Pecos Company acquired 100 percent of Suaro's outstanding stock for $1,450,000 cash on January 1, 2020, when Suaro at the following balance sheet: At acquisition date, the fair values of each identifiable asset and liability that differed from book value were as follows: Additional Information 1) Although at acquistion date Pecos expected future benefits from Suaro's in-process research and development (R\&D), by the end of 2020 it became clear that the research project was a failure with no future economic benefits. 2) During 2020, Suaro earns $75,000 and pays no dividends 3) Selected amounts from Peco's and Suaro's separate finacial statements at December 31, 2021, are presented in the consolidated information worksheet. All consolidated worksheets are to be prepared as of December 31, 2021, two years subsequent to acquisition. 4) Pecos's Janauary 1, 2021, Retained Earnings balance-before any effect from Suaro's 2020 income--is ($930,000) (credit 5) Pecos has 500,000 common shares outstanding for EPS calculations and reported $2,943,100 for consolidated assets at the beginning of the period. Trial balance as of 12/31/2021 Trial Balance as of 12/31/2021 \begin{tabular}{|c|c|} \hline Without & With \\ \hline Impairment & Impairment \\ \hline \end{tabular} Common shares outstanding Consolidated net income/(loss) Consolidated assets, 1/1/21 Consolidated assets, 12/31/21 Consolidated equity, 1/1/21 Consolidated equity, 12/31/21 Consolidated liabilities Earnings-per-share Return on assets Return on equity Debt-to-equity
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