QUESTION:

1. Complete the following consolidation worksheet.

Alpha acquired 70% of Beta's shares on July 1,2021 paying $750,000 in equity securities. The remaining 30% of Beta's shares traded closely near an average price that totaled $320,000 both before and after Alpha's acquisition. In reviewing the acquisition, Alpha assigned a $100,000 fair value to a patent recently developed by Beta, even though it was not recorded within the financial records of the subsidiary. This patent is anticiphted to have a remaining life of five years. Also, Buildings recorded in Beta's book were undervalued by $30,000 with remaining life of 10 years. Alpha uses the equity method to account for the Investment in Beta. The following financials are available for these two companies for 2021. In addition, the subsidiary's income was earned uniformly thought the year. Subsidiary dividend payments were made quarterly