PROBLEM II: WORKSHEET CONSOLIDATION ENTRIES (20 POINTS) Pin Corporation acquired 70% of Stripe Company on January 1, 2020 for $420,000 cash. The fair value of the other 30% ownership interest is estimated to be $180,000 Below is the 12/31/20 financial information for the two companies PIN CORPORATION STRIPE COMPANY Debit Credit Debit Credit Cash 5 374,100 $ 216,000 Accounts Receivable 208,100 183,000 Inventory 210,000 170,000 Land 239,000 185,000 Plant Assets 280,000 235,000 Investment in Stripe 492,800 Cost of Goods Sold 130,000 68,000 Wages Expense 87,000 49,000 Depreciation Expense 31,000 26,000 Interest Expense 33,000 37,000 Other Expenses 36,400 39.000 Dividends Declared 40,000 50,000 Accumulated Depreciation $ 131,600 $ 130,000 Accounts Payable 157.000 99,000 Wages Payable 122.000 56,000 Notes Payable 160,000 43,000 Common Stock 100,000 150,000 280,000 170,000 Retained Earnings (1/1/2020) 534,000 180,000 Sales 569,000 430,000 Income from Stripe 107,800 $2,161,400 $ 2,161,400 $1,258,000 $1,258,000 APIC ADDITIONAL INFORMATION: On the date of acquisition: * The Book Value of Stripe Company's net identifiable assets was $500,000 * Stripe Company's Plant Assets were overvalued by $18,000 remaining life was estimated to be 5 years). * Stripe Company's Inventories were undervalued by $45,000 (all sold by year end). * New Goodwill was determined to be $73,000. * At year-end, it was determined that the New Goodwill was impaired BY $15,600. * Stripe reported net income of $211,000 REQUIRED: Using the space below, prepare the following CONSOLIDATION WORKSHEET ENTRIES at December 31, 2020 IN ORDER TO GET CREDIT FOR YOU ANSWERS, PLEASE BE SURE TO CLEARLY SHOW YOUR WORK/CALCULATIONS a. Basic Consolidation Entry (6 POINTS), b. Amortized Excess Value (Differential) Reclassification Entry 17 POINTSI c.(Remaining Excess Value Differential) Reclassification Entry 17 POINTS) PROBLEM II: WORKSHEET CONSOLIDATION ENTRIES (20 POINTS) Pin Corporation acquired 70% of Stripe Company on January 1, 2020 for $420,000 cash. The fair value of the other 30% ownership interest is estimated to be $180,000 Below is the 12/31/20 financial information for the two companies PIN CORPORATION STRIPE COMPANY Debit Credit Debit Credit Cash 5 374,100 $ 216,000 Accounts Receivable 208,100 183,000 Inventory 210,000 170,000 Land 239,000 185,000 Plant Assets 280,000 235,000 Investment in Stripe 492,800 Cost of Goods Sold 130,000 68,000 Wages Expense 87,000 49,000 Depreciation Expense 31,000 26,000 Interest Expense 33,000 37,000 Other Expenses 36,400 39.000 Dividends Declared 40,000 50,000 Accumulated Depreciation $ 131,600 $ 130,000 Accounts Payable 157.000 99,000 Wages Payable 122.000 56,000 Notes Payable 160,000 43,000 Common Stock 100,000 150,000 280,000 170,000 Retained Earnings (1/1/2020) 534,000 180,000 Sales 569,000 430,000 Income from Stripe 107,800 $2,161,400 $ 2,161,400 $1,258,000 $1,258,000 APIC ADDITIONAL INFORMATION: On the date of acquisition: * The Book Value of Stripe Company's net identifiable assets was $500,000 * Stripe Company's Plant Assets were overvalued by $18,000 remaining life was estimated to be 5 years). * Stripe Company's Inventories were undervalued by $45,000 (all sold by year end). * New Goodwill was determined to be $73,000. * At year-end, it was determined that the New Goodwill was impaired BY $15,600. * Stripe reported net income of $211,000 REQUIRED: Using the space below, prepare the following CONSOLIDATION WORKSHEET ENTRIES at December 31, 2020 IN ORDER TO GET CREDIT FOR YOU ANSWERS, PLEASE BE SURE TO CLEARLY SHOW YOUR WORK/CALCULATIONS a. Basic Consolidation Entry (6 POINTS), b. Amortized Excess Value (Differential) Reclassification Entry 17 POINTSI c.(Remaining Excess Value Differential) Reclassification Entry 17 POINTS)