preliminary financial statements for Black Co. and Blue Co. for the year common 2018, were 16. (33 points) The following are preliminary financial statements for Black ending December 31, 2018 prior to Black's acquisition of Blue. listed Sales Expenses Net income Black Co. 5360.000 (240.000) $120.000 Blocco $228.000 132.000) S 96.000 Retained caming, January 1, 2018 Net income (from above) Dividends paid Retained earnings, December 31, 2018 $180,000 120.000 (36.000) 5564,000 $252.000 96.000 $348.000 Current assets Land Building (net) Total assets $360,000 120,000 480,000 $960,000 $120,000 108,000 336.000 5564.000 Liabilities Common stock Additional Paid-In Capital Retained earnings, December 31, 2018 Total liabilities and stockholders' equity $108.000 192.000 96,000 564.000 5960,000 S132.000 72,000 12,000 348.000 $564.000 On December 31, 2018 (subsequent to the preceding statements), Black exchanged 10,000 shares of its $10 par value common stock for all of the outstanding shares of Blue, Black's stock on that date has a fair value of $50 per share. Black was willing to issue 10.000 shares of stock because Blue's land was appraised at $204,000. Vack also paid $14,000 to several attorneys and accountants who assisted in creating this combination as well as $8,000 in stock issuance costs. Required: A. Assuming that these two companies retained their separate legal identities, prepare the journal entry(-ies) required to record Black Co's December 31, 2018 investment in Blue Co. Debit Credit Date Account B. Prepare the purchase price allocation for Black. EE STRESSUES AUTY BESTE C. Assuming that these two companies retained their separate legal identities, prepare a consolidation worksheet as of December 31, 2018 using EXCEL. D. How would you account for in-process research and development in a business combination accounted for using the acquisition method? E. Assume that Black's purchase of Blue had included some contingent consideration. How is a contingent consideration accounted for in an acquisition business combination transaction? The following are preminary financial December 31, 2015 to Black's quition of Sales Net income God Bloom Retained caring, 1.2018 Net income from above) Dividends paid Retained earnings, December 31.2018 Sice 132.00 Current acts Land Building (net) Total assets 120.000 5252.000 556100 SBRO 560,000 315.000 SW Liabilities Common stock Additional Paid-In Capital Retained earnings, December 31, 2018 Total liabilities and stockholders' equity .000 Se S108 000 192.000 96.000 56-4.000 90.000 13200 72.000 12,000 On December 31, 2018 (subsequent to the preceding 5564.00 01 (subsequent to the precedine statements lack exchanged 10.000 shares of its S10 par Wade common stock for all of the outstanding shoes of Black's sack on that date has a fait value er share. Black was willing to issue 10.000 shares of stock because Blue's land was appraised a s kaso paid $14,000 to several attorneys and accountants who assisted in creating this combination as well is $8,000 in stock issuance costs. Required: A. Assuming that these two companies retained their separate legal identities, prepare the journal entry-les) required to record Black Co.'s December 31, 2018 investment in Blue Co. Date Account Debit Credit B. Prepare the purchase price allocation for Black. separate legal identities, prepare a consolidation C. Assuming that these two companies retained their separate legal worksheet as of December 31, 2018 using EXCEL D. How would you account for research and development in a accounted for using the acquisition method? dewelopment in a business combination E. Assume that Black's purchase of Blue had included some contingent consider contingent consideration accounted for in an acquisition business combination transaction ded some contingent consideration. How is a preliminary financial statements for Black Co. and Blue Co. for the year common 2018, were 16. (33 points) The following are preliminary financial statements for Black ending December 31, 2018 prior to Black's acquisition of Blue. listed Sales Expenses Net income Black Co. 5360.000 (240.000) $120.000 Blocco $228.000 132.000) S 96.000 Retained caming, January 1, 2018 Net income (from above) Dividends paid Retained earnings, December 31, 2018 $180,000 120.000 (36.000) 5564,000 $252.000 96.000 $348.000 Current assets Land Building (net) Total assets $360,000 120,000 480,000 $960,000 $120,000 108,000 336.000 5564.000 Liabilities Common stock Additional Paid-In Capital Retained earnings, December 31, 2018 Total liabilities and stockholders' equity $108.000 192.000 96,000 564.000 5960,000 S132.000 72,000 12,000 348.000 $564.000 On December 31, 2018 (subsequent to the preceding statements), Black exchanged 10,000 shares of its $10 par value common stock for all of the outstanding shares of Blue, Black's stock on that date has a fair value of $50 per share. Black was willing to issue 10.000 shares of stock because Blue's land was appraised at $204,000. Vack also paid $14,000 to several attorneys and accountants who assisted in creating this combination as well as $8,000 in stock issuance costs. Required: A. Assuming that these two companies retained their separate legal identities, prepare the journal entry(-ies) required to record Black Co's December 31, 2018 investment in Blue Co. Debit Credit Date Account B. Prepare the purchase price allocation for Black. EE STRESSUES AUTY BESTE C. Assuming that these two companies retained their separate legal identities, prepare a consolidation worksheet as of December 31, 2018 using EXCEL. D. How would you account for in-process research and development in a business combination accounted for using the acquisition method? E. Assume that Black's purchase of Blue had included some contingent consideration. How is a contingent consideration accounted for in an acquisition business combination transaction? The following are preminary financial December 31, 2015 to Black's quition of Sales Net income God Bloom Retained caring, 1.2018 Net income from above) Dividends paid Retained earnings, December 31.2018 Sice 132.00 Current acts Land Building (net) Total assets 120.000 5252.000 556100 SBRO 560,000 315.000 SW Liabilities Common stock Additional Paid-In Capital Retained earnings, December 31, 2018 Total liabilities and stockholders' equity .000 Se S108 000 192.000 96.000 56-4.000 90.000 13200 72.000 12,000 On December 31, 2018 (subsequent to the preceding 5564.00 01 (subsequent to the precedine statements lack exchanged 10.000 shares of its S10 par Wade common stock for all of the outstanding shoes of Black's sack on that date has a fait value er share. Black was willing to issue 10.000 shares of stock because Blue's land was appraised a s kaso paid $14,000 to several attorneys and accountants who assisted in creating this combination as well is $8,000 in stock issuance costs. Required: A. Assuming that these two companies retained their separate legal identities, prepare the journal entry-les) required to record Black Co.'s December 31, 2018 investment in Blue Co. Date Account Debit Credit B. Prepare the purchase price allocation for Black. separate legal identities, prepare a consolidation C. Assuming that these two companies retained their separate legal worksheet as of December 31, 2018 using EXCEL D. How would you account for research and development in a accounted for using the acquisition method? dewelopment in a business combination E. Assume that Black's purchase of Blue had included some contingent consider contingent consideration accounted for in an acquisition business combination transaction ded some contingent consideration. How is a