Poindexter Company bought $80\%$ of the common stock of Shaw Company on January $1,2019.$ On that

date, the fair value of all of Shaw Company$$s stock was $$321,000,$ though shareholder equity accounts

on that date totaled $$190,000.$ Poindexter paid $$260,000$ cash for its shares. Appraisals at the

acquisition date showed the following:

Book Value Fair Value

Inventory $(2-$month remaining life$)$ $ $80,000$ $ $75,000$

Land $70,000100,000$

Buildings and equipment $(10-$year remaining life$)40,00090,000$

In addition, there is an unrecorded patent having a four$-$year life valued at $40,000.$

Following are the balances on December $31,2019$:

Poindexter Shaw

Cash $133,00025,000$

Accounts receivable $95,00060,000$

Inventory $115,000120,000$

Investment in Shaw $272,000-0-$

Land $100,00070,000$

Buildings & Equipment, net $40,000165,000$

Accounts payable $(65,000)(75,000)$

Notes payable $(20,000)(150,000)$

Common stock $(300,000)(100,000)$

Retained earnings $(350,000)(90,000)$

Dividends $80,00035,000$

Revenues $(950,000)(600,000)$

Cost of goods sold $520,000300,000$

Depreciation expense $370,000240,000$

Equity in income of Shaw $(40,000)-0-$

Required:

$1)$ Prepare the consolidation entries at December $31,2019.$ Please include all of your work,

including the goodwill calculation, amortization schedule and income tie out.

$2)$ Prepare a consolidating worksheet

$3)$ Prepare a set of consolidated financial statements $($no need for statement of cash flows$)$

You will also be graded on completing an EXCEL spreadsheet for the consolidation and creating a set of

consolidated financial statements from your worksheet. Your work should be as automated as possible.

The financial statements should be generated automatically from the consolidating worksheet. The

worksheet should be automated as much as possible.