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Purple, Inc, and Silver, Inc. formed a business combination on January 1, 2018 when Purple acquired a percentage of the outstanding shares of Silver. The

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Purple, Inc, and Silver, Inc. formed a business combination on January 1, 2018 when Purple acquired a percentage of the outstanding shares of Silver. The details of the acquisition are given below - Percentage acquired by Purple 909% Acquisition Value 5 852 250.00 Silver's book value on date of acqu $ 680,090.00 Note: The acquisition price was considered proportionate to Silver [ total fair value Any excess acquisition value should be allocated to the following identifiable assets: Trademarks are undervalued by 70 000.00 Remaining useful life of trademarks 10 yTU. An unrecorded patent is valued at 38,000.00 Remaining life of patent 15 yum. Any remaining excess acquisition-date fair value was assigned to goodwill Since the date of acquisition, Purple has applied the equity method to its Investment in Silver account for internal record-keeping purposes; no goodwill impairment has occurred. Over the years, intercompany inventory sales between the two companies have been made and are summarized below: Costto Transfer Ending Balance 2018 90,000 117,000 30,000 2019 100,000 150,000 50,000 2020 97,100 135,000 41,440 2021 105,000 115,000 28,150 On January 1, 2019, Purple wold land to Silver. Information related to this sale is Original cost to Purple $ 110,000.00 Transfer Price 250,000.00 On January 2, 2020, Silver sold a building to Purple. Details related to this transactions are: Original cost to Silver 190,000.00 Accumulated depreciation at time . $ 1 12,500.00 Transfer price 150,090.00 Remaining useful life 5 yrs. On January 2, 2021, Purple bought equipment from Silver, Details related to this transactions are Original cost to Silver $ 155,000.00 The equipment was being depreciated over 10 years using the SL method. Transfer price 5 160,000.00 Remaining useful life 3 YTE. The financial statements for Silver as of December 31, 2021, and the your then ended follow. SINT ING Saler (P25 000.00) Con of goods sold 514.000.00 Operating and Interest 165,000.00 Income of Silver Net Income $ (246 000 00) Retained earnings, 1/1 $ (580,000.00) Net income (above) (246,000.00) Dividends declared 6.000 00 Retained earnings, $($20 080 00) Cash and receivables 160 000.00 Inventory 305.000100 Buildings (net) 450 000 00 Equipment (net) $20 000.00 Other lisets 105.000.00 Total assets $ 1,540.000 00 Liabilities (5 70 000.90) Common Stock (150,000 00) Retained earnings, ($20.000.00) Total Mabilities & $1 510.000.00 Required: 1. Prepare a schedule for the acquisition-date fair value allocations and amortization 2. Determine the amounts recorded in the "Investment in Silver" account and in the non-controlling interest account at (2) December 31 2020 and (6) December 31, 2021 Reconcile the "Investment in Silver" account to the subsidiary's equity accounts at December 31, 2020. 4. Reconcile the"Non-controlling interest" to the subsidiary's equity accounts at December 31, 2020. 5. Calculate the "Equity in Silver's Income" to be reported on Purple' books at December 31, 2020 Calculate the Non-controlling Interest's share of S December 31, 2021 7 Prepare the consolidating journal entries at December 31, 2021

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