Pop Corporation acquired 70 percent of Sola Company's voliny common shares on January 1, 20X2, for $108,500. Al that date, the noncontrolling interest had a fair value of $46,500 and Sexla reported $70,000 of common stock outstanding and relained earnings of $30,000. The illerential is assigned to buiklings and equipment, which had a fair value $20,000 higher than book value and a remaining 10- year life, and to palenis, which had a fair value $35,000 higher than book value and a remaining life of live years at the date of the business combination. Trial balances for the companies as of December 31, 20X3, are as follows: Item Soda Company Debit Credit $21,600 35.000 40,000 260.000 Pop Corporation Debit Credit $ 15,400 165.000 80,000 340.000 109,600 186.000 20.000 16,000 30.000 $140,000 92.400 200.000 Cash & Accounts Receivable Inventory Land Buildings & Equipment Investment in Soda Company Cost of Gocxls Sold Depreciation Expense Interest Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Bond Premium Common Stock Rctained Larnings Sales Other Income Income from Soda Company 79,800 15,000 5,200 15,000 S 80.000 35,000 100.000 1,600 70.000 60,000 125,000 120,000 127.900 260,000 13.600 8,100 $962.000 $962.000 $471.600 $471.600 Page 291 On December 31, 20X2. Soda purchased inventory for $32,000 and sold it to Pop for $48.000. Pop resold $27,000 of the inventory (1.c., $27,000 of the $48,000 acquired from Soda) during 20X3 and had the remaining balance in inventory at December 31, 20X3. During 20X3, Soda sold inventory purchased for $60,000 to Pop for $90,000, and Pop resold all but $24,000 of its purchase. On March 10, 20X3, Pop sold inventory purchased for $15,000 to Soda for $30,000. Sexla sold all but $7,600 of the inventory prior to December 31, 20X3. Assume Pop uses the fully adjusted equity method, that both companies use straight-line depreciation, and that no property, plant, and equipment has been purchased since the acquisition Required a. Give all consolidation entries needed to prepare a full set of consolidated financial statements at December 31, 20X3. for Pop and Soda. b. Prepare a three-part consolidation worksheet for 20X3. Pop Corporation acquired 70 percent of Sola Company's voliny common shares on January 1, 20X2, for $108,500. Al that date, the noncontrolling interest had a fair value of $46,500 and Sexla reported $70,000 of common stock outstanding and relained earnings of $30,000. The illerential is assigned to buiklings and equipment, which had a fair value $20,000 higher than book value and a remaining 10- year life, and to palenis, which had a fair value $35,000 higher than book value and a remaining life of live years at the date of the business combination. Trial balances for the companies as of December 31, 20X3, are as follows: Item Soda Company Debit Credit $21,600 35.000 40,000 260.000 Pop Corporation Debit Credit $ 15,400 165.000 80,000 340.000 109,600 186.000 20.000 16,000 30.000 $140,000 92.400 200.000 Cash & Accounts Receivable Inventory Land Buildings & Equipment Investment in Soda Company Cost of Gocxls Sold Depreciation Expense Interest Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Bond Premium Common Stock Rctained Larnings Sales Other Income Income from Soda Company 79,800 15,000 5,200 15,000 S 80.000 35,000 100.000 1,600 70.000 60,000 125,000 120,000 127.900 260,000 13.600 8,100 $962.000 $962.000 $471.600 $471.600 Page 291 On December 31, 20X2. Soda purchased inventory for $32,000 and sold it to Pop for $48.000. Pop resold $27,000 of the inventory (1.c., $27,000 of the $48,000 acquired from Soda) during 20X3 and had the remaining balance in inventory at December 31, 20X3. During 20X3, Soda sold inventory purchased for $60,000 to Pop for $90,000, and Pop resold all but $24,000 of its purchase. On March 10, 20X3, Pop sold inventory purchased for $15,000 to Soda for $30,000. Sexla sold all but $7,600 of the inventory prior to December 31, 20X3. Assume Pop uses the fully adjusted equity method, that both companies use straight-line depreciation, and that no property, plant, and equipment has been purchased since the acquisition Required a. Give all consolidation entries needed to prepare a full set of consolidated financial statements at December 31, 20X3. for Pop and Soda. b. Prepare a three-part consolidation worksheet for 20X3