Request #1 Prepare the Rolling River Company balance sheet as of 1/1/17 assuming Rolling River Company purchased the Denmark Wheel Company in an ASSET ACQUISITION for $14 million dollars. Provide enough detail for your CEO to understand the accounting.

Include the following:

Calculate (show your work) the amount of goodwill that will be recorded.

Provide the ASSET ACQUISTION journal entry (show separate from the schedule below).

Prepare a schedule showing

Pre-Asset Acquisition 1/1/17 Rolling River Company balance sheet account balances

Adjustments for the ASSET ACQUISTION journal entry

Post-Asset Acquisition 1/1/17 Rolling River Company balance sheet account balances

Request #2- Prepare the Rolling River Company consolidated balance sheet as of 1/1/17 assuming Rolling River Company purchased 80% of the Denmark Wheel Company stock (STOCK ACQUISITION) for $13 million ($1 million in cash and $12 million in Rolling River shares). Note: Rolling River Shares (market value $50/share). Provide enough detail for your CEO to understand the accounting.

Include the following:

Prepare the STOCK ACQUISITION journal entry to record the acquisition (provided by instructor).

Prepare a CAD

Prepare the workpaper entries (show separate from the consolidation workpaper)

Prepare the 1/1/17 consolidated balance sheet workpaper (DATE OF Acquisition)

Request #3 (25 points) Continuation from Request #2 -> Prepare the 3-section consolidation workpaper for Rolling River Company as of 12/31/17. Assume Rolling River Company is using the COST METHOD to account for the stock acquisition.

Include the following:

Prepare the workpaper entries (show separate from the consolidation workpaper)

Prepare the actual 3-section consolidation workpaper (Cost Method Year of Acquisition Chapter 4)

Balance sheets

Other: Denmark Wheel Assets and Liabilities not included in the above balance sheet.

Patent $1,000,000 (Asset)

Brand Name $3,000,000 (Asset)

Lawsuit $1,700,000 (Liability)

Debit Credit 1/1/17Investment in Subsidiary-Denmark Wheel Company $13,000,0CO Cash COMmOn Stock APIC $1,00o,00o 240,00O $11.760,000 Purchase 80%Of Denmark wheelCompany shares by paying 1,000,000 cash and issuing 240,000 shares to the Denmark wheel company shareholders (the 80% that are selling their shares). $ 50 Market Value $ 1 ParValue $49 APIC Debit Credit 1/1/17Investment in Subsidiary-Denmark Wheel Company $13,000,0CO Cash COMmOn Stock APIC $1,00o,00o 240,00O $11.760,000 Purchase 80%Of Denmark wheelCompany shares by paying 1,000,000 cash and issuing 240,000 shares to the Denmark wheel company shareholders (the 80% that are selling their shares). $ 50 Market Value $ 1 ParValue $49 APIC