PROBLEM 16

Peerless Corporation purchases 70% of Special Foods Corporation's outstanding Common Stock for $560,000, on 01/01/X1. At the date of acquisition, Special had accumulated depreciation of $205,000.

Special reported net income for 20X1 of $160,000 and paid dividends of $26,000.

Peerless' purchase of Special's net assets showed Fair Value exceeding Book Value by $155,000. Assets that had higher values were Inentory, $30,000; Land $100,000; and Building, $25,000.

It was determined that goodwill was impaired by $100,000.

All of the inventory was sold during 20X1. The Building has 5 years remaining on its usesful life and Special uses straight line depreciation.

Equity at 20X1 for Special was Common Stock, $200,000 and Retained Earnings, $100,000.

16A)- Prepare the Book Value Calculations on the provided worksheet. 16B)- Prepare the Basic Consolidation Entry on the Journal Entry Form below. 16C)- Prepare the Excess Value (Differential) Calculations on the provided worksheet. 16D) - Prepare the Amortized Value Reclassification Entry on the Joirnal Entry Form below. 16E) Prepare the Excess Value (Differential) Reclassification Entry on the Journal Entry Form below. 16F)Prepare the Accumulated Depreciation Consolidated Entry on the Journal Entry Form below. 16G) Prepare the 3-Part Consolidation Worksheet, attached. If you can get this right with work ill venmo you 20 beans