The following balance sheets have been prepared on December 31, Year 13 for Barbara Corp. and Joel Inc. Joel $50,000 $100,000 $30,000 Balance Sheets Cash Accounts Receivable Inventory Investment in Joel Property, Plant and Equipment* Accumulated Depreciation Total Assets * Includes land Barbara $30,000 $180,000 $70,000 $100,000 $600,000 ($280.000) $700,000 $140,000 ($40,000) $280,000 Current Liabilities Long-Term Debt Common shares Retained Earnings Liabilities and Equity $120,000 $400,000 $90,000 $90,000 $700,000 $30,000 $20,000 $40,000 $190,000 $280,000 Additional Information: Barbara uses the cost method to account for its 50% interest in Joel, which it acquired on January 1, Year 10 for $100,000. On that date, Joel's retained earnings were $20,000 and common shares $40,000. The acquisition differential was fully amortized by the end of Year 13. Barbara sold Land to Joel during Year 12 and recorded a $15,000 gain on the sale. At December 31, Year 13, Barbara's inventory contained $50,000 of merchandise purchased from Joel of which $20,000 remained unpaid at year end. Joel charges a 20% profit margin. Both companies are subject to a tax rate of 20%. Required: a. Prepare a Consolidated Balance Sheet for Barbara in good format on December 31, Year 13 assuming that Barbara's investment in Joel is a control investment. b. Prepare a Balance Sheet for Barbara on December 31, Year 13 assuming that Barbara's Investment in Joel is a joint venture investment. Show calculations for consolidated retained earnings for parts a. and b. For part b., show calculation for Investment in Joel. Hints: Total Assets a. $840,000; b. $705,000 The following balance sheets have been prepared on December 31, Year 13 for Barbara Corp. and Joel Inc. Joel $50,000 $100,000 $30,000 Balance Sheets Cash Accounts Receivable Inventory Investment in Joel Property, Plant and Equipment* Accumulated Depreciation Total Assets * Includes land Barbara $30,000 $180,000 $70,000 $100,000 $600,000 ($280.000) $700,000 $140,000 ($40,000) $280,000 Current Liabilities Long-Term Debt Common shares Retained Earnings Liabilities and Equity $120,000 $400,000 $90,000 $90,000 $700,000 $30,000 $20,000 $40,000 $190,000 $280,000 Additional Information: Barbara uses the cost method to account for its 50% interest in Joel, which it acquired on January 1, Year 10 for $100,000. On that date, Joel's retained earnings were $20,000 and common shares $40,000. The acquisition differential was fully amortized by the end of Year 13. Barbara sold Land to Joel during Year 12 and recorded a $15,000 gain on the sale. At December 31, Year 13, Barbara's inventory contained $50,000 of merchandise purchased from Joel of which $20,000 remained unpaid at year end. Joel charges a 20% profit margin. Both companies are subject to a tax rate of 20%. Required: a. Prepare a Consolidated Balance Sheet for Barbara in good format on December 31, Year 13 assuming that Barbara's investment in Joel is a control investment. b. Prepare a Balance Sheet for Barbara on December 31, Year 13 assuming that Barbara's Investment in Joel is a joint venture investment. Show calculations for consolidated retained earnings for parts a. and b. For part b., show calculation for Investment in Joel. Hints: Total Assets a. $840,000; b. $705,000