QUESTION 1 On Jan 1, 2019 Pip's Puppy Company acquires a 70% interest in Suzy's Suitcase company for $560,000 cash. The Parent uses the Cost Method. On that date Pip had the following balances: Common Stock Paid in Capital Retained Earnings ($50,000) ($25,000) ($115,000) On Jan 1, 2019 Pip's Inventory was overvalued by $15,000. Assume the FIFO Method. The Equipment was overvalued by $10,000 with a 5 year useful life and the Building undervalued by $150,000 with a 10 year useful life. At Dec 31 2021 The Parent had reported Net Income of ($1,200,000) and had paid $20,000 in Dividends. Their Retained Earnings Balance = ($575,000). At Dec 31st 2021 The Sub reported Net Income of ($485,000) and had paid a Dividend of $25,000. Their Retained Earnings Balance = ($350,000) The Sub sells inventory to the Parent at a 40% mark-up. The intercompany beginning inventory on 1/1/21 = $42,000. The 2021 intercompany sales = $325,000 and 25% remained unsold at year end. Assume the FIFO Method. On Jan 1, 2020, The Sub sold Machinery to the Parent for $225,000 cash. The Machinery had an original cost of $115,000 with accumulated depreciation of $42,000 and a remaining useful life of 4 years. REQUIRED: a. Prepare a Determination & Distribution of Excess Schedule b. Record the Elimination & Adjusting Consolidation Worksheet entries c. Prepare a schedule of the Investment in Sub Balance after the Elimination & Adjustment Entries d. Prepare a Consolidated Income Statement Worksheet indicating the Parent's Adjusted Net Income, The SUB's Adjusted Net Income and the Adjusted Consolidated Net Income e. Prepare a schedule showing the NCI value that will be reported on the Consolidated Balance Sheet f. Prepare a schedule showing the Retained Earnings Balance that will appear on the Consolidated Balance Sheet.