Required

a$.$ Create Book Value, Fair Value, Change schedule to determine total goodwill arising from this acquisition and its allocation as well as the BOY and EOY balances for Land, Buildings, Limited Life Intangibles, and Goodwill.

b$.$ Prepare a Schedule of Equity in Strong$$s net income, OCI, and dividends for $2021.$

c$.$ Prepare a consolidating working paper to consolidate the December $31,2021$ trial balances of Palant and Strong.Session $4-$ Consolidating with Intercompany Transactions

Palant Corporation acquired $80\%$ of Strong Company's common stock for $$45,500$ on January $1,$

The book value of Strong was $$10,000,$ and the fair value of Non$-$controlling interest was

$$9,500.$ Strong's assets and liabilities were reported at fair value at the date of acquisition

except for the items listed below:

Goodwill was impaired by $$2,000$ in $2020$ but no further impairment occurred in $2021.$ The land,

buildings, and identifiable intangibles are still held by Strong at the end of $2021.$

It is now December $31,2021.$ The trial balances of Palant and Strong are provided in the Excel

file. Information on intercompany transactions is as follows:

On January $2,2020,$ Palant sold equipment to Strong for a price of $$800.$ The equipment

had an original cost of $$1,000$ with $$700$ of accumulated depreciation at the time of sale

and a remaining life of $5$ years, straight$-$line.

Strong sells merchandise to Ralant $($for cash$)$ on a continuing basis, at a markup of $20\%$

on cost$.$ Palant's $2021$ beginning inventory contains $$90$ in goods purchased from

Strong $($including markup$).$ Ralant's $2021$ ending inventory contains $$120$ in goods

purchased from Strong $($including markup$).$ Total intercompany sales for $2021$ were

$$3,000.$