Prime Company acquired 100.00% of the common stock of Second Company on January 1, year one, for $600,000

On that date, Second had the following trial balance: Additional paid in capital (100,000) Building (12-year life) 250,000 Common stock (170,000) Current assets 170,000 Equipment (6-yr life) 160,000 Land 110,000 Liabilities (due in 4 years) (300,000) Retained earnings 1/year 1 (120,000) Totals 690,000 (690,000) During year one, Second reported net income of $60,000 During year one, Second paid dividends of $30,000 During year two, Second reported net income of $80,000 During year two, Second paid dividends of $40,000 On January 1, year one, fair values were: Land $146,000 Building $286,000 Equipment $184,000 There was no impairment of any goodwill arising from the acquisition. 1. Please use equity method for Prime to use to account for its acquisition of Second Company. 2. Use the data for the Prime Company acquisition of the Second Company to prepare the consolidation worksheet entries for the December 31, year one, worksheet. (S,A,I,D,C,E) 3. Use the data for the Prime Company acquisition of the Second Company to prepare the consolidation worksheet entries for the December 31, year two, worksheet. (S,A,I,D,C,E)