"REQUIRED A" ONLY FOR CORGAN COMPANY.

"D" ONLY FOR ACKERMAN.

"NONCONTROLLING INTEREST IN SUBSIDIARY, 12/31/21" ONLY FOR PROFORM.

On January 1, 2020, Corgan Company acquired 70 percent of the outstanding voting stock of Smashing, Inc., for a total of $1435,000 In cash and other consideration. At the acquisition date, Smashing had common stock of $920,000, retained earnings of $470,000, and a noncontrolling Interest fair value of $615,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with a 20-year remaining life. Corgan uses the equity method to account for its investment in Smashing. During the next two years, Smashing reported the following: Het Income 2020 $370,000 2021 350,000 Dividends Declared $57.000 67,000 Inventory Purchases from Corgan $ 320,000 340,000 Corgan sells inventory to Smashing using a 60 percent markup on cost. At the end of 2020 and 2021, 30 percent of the current year purchases remain in Smashing's inventory a. Compute the equity method balance in Corgan's Investment in Smashing, Inc., account as of December 31, 2021. b. Prepare the worksheet adjustments for the December 31, 2021, consolidation of Corgan and Smashing. Complete this question by entering your answers in the tabs below. Required Required Compute the equity method balance in Corgan's Investment in Smashing, Inc., account as of December 31, 2021. 120121 Required 8 > On January 1, 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $110,000 in cash. The equipment had originally cost $99,000 but had a book value of only $60,500 when transferred. On that date, the equipment had a five-year remaining life. Depreciation expense is computed using the straight-line method. Ackerman reported $550,000 in net income in 2021 (not including any investment income) while Brannigan reported $180,500. Ackerman attributed any excess acquisition date fair value to Brannigan's unpatented technology, which was amortized at a rate of $6.500 per year. a. What is consolidated net income for 2021? b. What is the parent's share of consolidated net income for 202144 Ackerman owns only 90 percent of Brannigan? c. What is the parent's share of consolidated net income for 2021 if Ackerman owns only 90 percent of Brannigan and the equipment transfer was upstream? d. What is the consolidated net income for 2022 if Ackerman reports $570,000 (does not include investment income) and Brannigan $193,000 in income? Assume that Brannigan is a wholly owned subsidiary and the equipment transfer was downstream a. Consolidated net income for 2021 b. Parent's share of consolidated net income c. Parent's share of consolidated net income d. Consolidated not income for 2022 Amount $ 684,400 $ 667,000 $ 670,960 ProForm acquired 70 percent of ClipRite on June 30, 2020, for $1,190,000 in cash. Based on ClipRite's acquisition date fair value, an unrecorded intangible of $750,000 was recognized and is being amortized at the rate of $18,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $510,000 at the acquisition date. The 2021 financial statements are as follows: Sales Cont of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in Cliprite Tixed assets Accumulated depreciation Totals Liabilities Come on stock Retained earnings, 12/31/21 Totals ProForm $ (880,000) 575,000 180,000 (42,000 $ (167,000) $(1,900,000) (167,000) 180,000 $(1,887,000) $ 480,000 370,000 1,190,000 1,800,000 (900.000) $ 2,940,000 $ (853,000) (200,000) (1.887.000) ${2,940,000) ClipRite $ (760,000) 440,000 140,000 0 $ (180,000) $ (930,000) (180,000) 60.000 $(1,050,000) $ 380,000 780,000 0 1 (150,000) $ 2,010,000 $ (760,000) (200,000) (1.050,000 $(2,010,000) (Note: Parentheses indicate a credit balance.) ClipRite sold ProForm inventory costing $77,000 during the last six months of 2020 for $170,000. At year-end, 30 percent remained ClipRite sold ProForm inventory costing $240,000 during 2021 for $330,000. At year-end, 10 percent is left Determine the consolidated balances for the following: (Input all amounts as positive values.) Sales Cost of Goods Sold Operating Expenses Dividend Income Net Income Attributable to Noncontrolling Interest Inventory Noncontrolling Interest in Subsidiary, 12/3121