Push Corporation paid $16,200 for a 90% interest in Swish Corporation on January 1, 2019, when Swish stockholders' equity consisted of $10,000 Capital Stock and $3,000 of Retained Earnings. The excess cost over book value was attributable to goodwill. Assume proportional pricing for the NCI.

Additional information:

1. Push sells merchandise to Swish at 120% of Push's cost. During 2019, Push's sales to Swish were $4,800, of which half of the merchandise remained in Swish's inventory at December 31, 2019 (The 2019 ending inventory was sold in 2020.) During 2020, Push's sales to Swish were $6,000 of which 60% remained in Swish's inventory at December 31, 2020.

At year-end 2020, Swish owed Push $1,500 for the inventory purchased during 2020.

2. Push Corporation sold equipment with a book value of $2,000 and a remaining useful life of four years and no salvage value to Swish Corporation on January 1, 2020 for $2,800. Straight-line depreciation is used.

3. During 2020, Swish sold to Push land for $50,000 that had a book value of $20,000. Push still owns the land at 12/31/20.

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4. Separate company financial statements for Push Corporation and Subsidiary at December 31, 2020 are summarized in the first two columns of the consolidation working papers. See Spreadsheet Tab.

FOR ANY CALCULATION, DO NOT ROUND AMOUNTS

Required: Carefully Follow and label each step ON THE SPREADSHEET TAB.

1. Prepare the acquisition analysis as of acquisition date. Compute the

unamortized acquisition differential as of 1/1/2019. Goodwill is not considered impaired at 12/31/20.

2. Analyze each intercompany transaction. Label as either upstream or

downstream. Determine amounts of profit that are unrealized and/or realized for 2020.

3. SEPARATELY calculate Net income to the controlling interest for the year 2020

4. Verify the calculation of the balance in the account equity in sub

earnings and record the parent company entries with respect to its investment during 2020

5. Prepare all elimination/consolidation entries for 2020

6. Complete the consolidating spreadsheet for the year ended December 31, 2020.

Answer Sheet: Must use cell references. Read each question carefully.

1. What is the amount of goodwill shown in the consolidated balance sheet?

2. What amount of the intercompany Equipment net gain or loss adjustment be confirmed in 2020?

Enter as a positive value if gain or a negative value if loss adjustment to net income to controlling interest using a cell reference .

3. What is the amount of the parent company intercompany inventory profit that

must be unconfirmed (unrealized) in 2020? Enter as a positive value.

4. What is the amount of the subsidiary intercompany land gain profit that is confirmed (realized) in 2020?

5. What is the NonControlling Interest Claim on the Subsidiary's Net Income for 2020?

Enter as a positive amount using a cell reference.

6. What is the Net Income Attributed to the Controlling Interest for 2020?

7. What are consolidated total assets in the Consolidated Balance Sheet?

8. What is the NonControlling Interest Claim on the Subsidiary's Equity at 12/31/20

as presented in the Consolidated Balance Sheet?

9. What is the adjustment to the land account in the elimination entries?

Enter as a positive amount.

10. What are consolidated sales for 2020?