Submi Exit Giant acquired all of Small's common stock on January 1, 2014, in exchange for cash of $770,000. On that day, Small reported common stock of $170,000 and retained earnings of $400,000. At the acquisition date, $61,800 of the fair-value price was attributed to undervalued land while $78,000 was assigned to undervalued equipment having a 10-year remaining life. The $60,200 unallocated portion of the acquisition-date excess fair value over book value was viewed as goodwill. Over the next few years, Giant applied the equity method to the recording of this investment Following are individual financial statements for the year ending December 31, 2018. On that date, Small owes Giant $14,400. Small declared and paid dividends in the same period. Credits are indicated by parentheses. Giant $(1,151,300) 556,000 170,500 Small Revenues Cost of goods sold Depreciation expense Equity in income of Small (506,500) 109,500 170,000 (219,200) 0 Net income (644,000) s (227,000) Retained earnings, 1/1/18 Net income (above) Dividends declared $(1,820,000) $ (644,000) 300,000 $(2,164,000) (714,000) (227,000) 90,000 (851,000) Retained earnings, 12/31/18 Current assets 683,000 1,182,000 480,000 305,000 679,000 353,000 Investment in Smal1 191,000 513,000 359,000 Land Buildings (net) Equipment (net) Goodwill C 0 $ 3,329,000 $1,416,000 Total assets (915,000) $ (250,000) (2,164,000) $(3,329,000) $(1,416,000) (395,000) (170,000) (851,000) Common stock Retained earnings (above) Total liabilities and equities 7 a. How was the $219,200 Equity in Income of Small balance computed? b. Determine the totals to be reported by this business combination for the year ending December 31, 2018 c. Prepare a consolidation worksheet for Giant and Small for the year ending December 31, 2018 d. If Giant determined that the entire amount of goodwill from its investment in Small was impaired in 2018, what journal entry would Giant make to record such impairment? t nces Complete this question by entering your answers in the tabs below. Required C Required D Required B Required A How was the $219,200 Equity in Income of Small balance computed? Equity accrual Less: Amortization expense $ Equity in Income of Small Exit Determine the totals to be reported by this business combination for the year ending December 31, 2018. Totals Revenues Cost of goods sold Depreciation expense Income of Small Net income Retained earnings, 1/1/18 Dividends declared Retained earnings, 12/31/18 Current assets Investment in Small Land Building (net) Equipment (net) Goodwill Total assets Liabilities Common stock Retained earnings, 12/31/18 Total liabilities and equity Submi Exit Giant acquired all of Small's common stock on January 1, 2014, in exchange for cash of $770,000. On that day, Small reported common stock of $170,000 and retained earnings of $400,000. At the acquisition date, $61,800 of the fair-value price was attributed to undervalued land while $78,000 was assigned to undervalued equipment having a 10-year remaining life. The $60,200 unallocated portion of the acquisition-date excess fair value over book value was viewed as goodwill. Over the next few years, Giant applied the equity method to the recording of this investment Following are individual financial statements for the year ending December 31, 2018. On that date, Small owes Giant $14,400. Small declared and paid dividends in the same period. Credits are indicated by parentheses. Giant $(1,151,300) 556,000 170,500 Small Revenues Cost of goods sold Depreciation expense Equity in income of Small (506,500) 109,500 170,000 (219,200) 0 Net income (644,000) s (227,000) Retained earnings, 1/1/18 Net income (above) Dividends declared $(1,820,000) $ (644,000) 300,000 $(2,164,000) (714,000) (227,000) 90,000 (851,000) Retained earnings, 12/31/18 Current assets 683,000 1,182,000 480,000 305,000 679,000 353,000 Investment in Smal1 191,000 513,000 359,000 Land Buildings (net) Equipment (net) Goodwill C 0 $ 3,329,000 $1,416,000 Total assets (915,000) $ (250,000) (2,164,000) $(3,329,000) $(1,416,000) (395,000) (170,000) (851,000) Common stock Retained earnings (above) Total liabilities and equities 7 a. How was the $219,200 Equity in Income of Small balance computed? b. Determine the totals to be reported by this business combination for the year ending December 31, 2018 c. Prepare a consolidation worksheet for Giant and Small for the year ending December 31, 2018 d. If Giant determined that the entire amount of goodwill from its investment in Small was impaired in 2018, what journal entry would Giant make to record such impairment? t nces Complete this question by entering your answers in the tabs below. Required C Required D Required B Required A How was the $219,200 Equity in Income of Small balance computed? Equity accrual Less: Amortization expense $ Equity in Income of Small Exit Determine the totals to be reported by this business combination for the year ending December 31, 2018. Totals Revenues Cost of goods sold Depreciation expense Income of Small Net income Retained earnings, 1/1/18 Dividends declared Retained earnings, 12/31/18 Current assets Investment in Small Land Building (net) Equipment (net) Goodwill Total assets Liabilities Common stock Retained earnings, 12/31/18 Total liabilities and equity