Required: 1. Provide schedules to show the conceptual calculations for the following items: a. P's total Investment balance at 12/31/22. b. Total NC interest on the consolidated balance sheet at 12/31/22. c. Consolidated income to P for the year ending 12/31/22. d. Consolidated income to the NC interest for the year ending 12/31/22. 2. Prepare all consolidation entries needed to prepare a full set of consolidated financial statements at 12/31/22. Provide appropriate descriptions and supporting calculations for each entry. 3. Prepare in good form a consolidation worksheet using Excel as of December 31, 2022. Appropriately label your consolidation entries in your consolidation worksheet using the format used in class. NOTE: The accumulated depreciation entry to adjust as of the acquisition date is not a required part of this assignment. Comprehensive Consolidation Problem 12/31/22 Trial Balance Additional Information: 1. P acquired 90% of S's common stock on 1/1/2019 for $900,000. Assume that the 10% non-controlling interest is valued proportionately. On that date, S had common stock of $450,000, and retained earnings of $300,000. P uses the full equity method to account for its investment in S. 2. On the acquisition date, the fair value of S's inventory exceeded its book value by $20,000, the fair value of S's equipment exceeded its book value by $36,000, and the fair value of S's land exceeded book value by $45,000. The book value of S's remaining assets and liabilities equaled their book values. All of the acquired inventory was sold in 2019. All depreciable assets have a remaining useful life of 10 years. Goodwill was impaired by $30,000 in 2021 and $25,000 in 2022 . 3. During 2021, S sold inventory with an original cost of $40,000 to P for $64,000. P sold 2/3 of this inventory in 2021 and the remaining 1/3 of this inventory in 2022 . 4. During 2022, P sold inventory costing $40,000 to S for $30,000. S sold 1/4 of this inventory in 2022 and held the remaining 3/4 of this inventory at 12/31/22. 5. On 1/1/22, S sold equipment to P for $64,000. The equipment was purchased by S for $100,000 on 1/1/20. S used straight-line depreciation with a 10 -year useful life, and P continued to use the straight-line method over the remaining 8 years. 6. On 12/31/19, P sold land to S for $60,000. P originally purchased the land on 1/1/15 for $80,000. S sold the land to an outside entity for $68,000 in 2022 . Required: 1. Provide schedules to show the conceptual calculations for the following items: a. P's total Investment balance at 12/31/22. b. Total NC interest on the consolidated balance sheet at 12/31/22. c. Consolidated income to P for the year ending 12/31/22. d. Consolidated income to the NC interest for the year ending 12/31/22. 2. Prepare all consolidation entries needed to prepare a full set of consolidated financial statements at 12/31/22. Provide appropriate descriptions and supporting calculations for each entry. 3. Prepare in good form a consolidation worksheet using Excel as of December 31, 2022. Appropriately label your consolidation entries in your consolidation worksheet using the format used in class. NOTE: The accumulated depreciation entry to adjust as of the acquisition date is not a required part of this assignment. Comprehensive Consolidation Problem 12/31/22 Trial Balance Additional Information: 1. P acquired 90% of S's common stock on 1/1/2019 for $900,000. Assume that the 10% non-controlling interest is valued proportionately. On that date, S had common stock of $450,000, and retained earnings of $300,000. P uses the full equity method to account for its investment in S. 2. On the acquisition date, the fair value of S's inventory exceeded its book value by $20,000, the fair value of S's equipment exceeded its book value by $36,000, and the fair value of S's land exceeded book value by $45,000. The book value of S's remaining assets and liabilities equaled their book values. All of the acquired inventory was sold in 2019. All depreciable assets have a remaining useful life of 10 years. Goodwill was impaired by $30,000 in 2021 and $25,000 in 2022 . 3. During 2021, S sold inventory with an original cost of $40,000 to P for $64,000. P sold 2/3 of this inventory in 2021 and the remaining 1/3 of this inventory in 2022 . 4. During 2022, P sold inventory costing $40,000 to S for $30,000. S sold 1/4 of this inventory in 2022 and held the remaining 3/4 of this inventory at 12/31/22. 5. On 1/1/22, S sold equipment to P for $64,000. The equipment was purchased by S for $100,000 on 1/1/20. S used straight-line depreciation with a 10 -year useful life, and P continued to use the straight-line method over the remaining 8 years. 6. On 12/31/19, P sold land to S for $60,000. P originally purchased the land on 1/1/15 for $80,000. S sold the land to an outside entity for $68,000 in 2022
