Question 1: Problem Company spent $380,000 to acquire 100% of Solution Company's stock on January 1, 2019. On December 31, 2019, the trial balances of the two companies were as follows: Problem Company Solution Corporation Debit Credit Debit Credit $ $ $ $ Cash 98,000 61,000 Accounts Receivable 193,000 125,500 Land 81,000 92,500 Buildings & Equipment 675,000 320,000 Investment in Solution Company 389,000 Cost of Services Provided 634,000 117,000 Depreciation Expense 47,500 16,000 Other Expenses 76,500 50,000 Dividends Declared 42,000 14,000 Accumulated Depreciation 357,500 83,000 Accounts Payable 155,500 15,000 Taxes Payable 78,000 54,000 Notes Payable 135,000 94,000 Common Stock 270,000 185,000 Retained Earnings 394,000 155,000 Service Revenue 823,000 210,000 Income from Solution Company 23,000 Total 2,236,000 2,236,000 796,000 796,000 The difference between the acquisition price and underlying book value of net assets in Solution is assigned to buildings and equipment with a remaining economic life of 10 years from the date of acquisition Required: A. Give the Journal entries recorded by Problem for the acquisition of Solution on January 1, 2019. (20 points) B. Give the Journal entries required under equity method (income from Solution and dividend received from Solution) on Problem's books at December 31, 2019. (20 points) C. Prepare the book value calculation table in order to prepare consolidated financial statements at December 31, 2019. (10 points) D. Give the basic consolidation entry at December 31, 2019. (10 points) E. Prepare the excess value (differential) calculation table in order to prepare consolidated financial statements at December 31, 2019. (10 points) F. Give amortized excess value reclassification and excess value (differential) reclassification entries at December 31, 2019. (10 points) G. Prepare the accumulated depreciation consolidation entry needed at December 31, 2019. (10 points)