The individual financial statements for Absom, Inc. and Deter Company for the year ended December 31, 2017, are shown below.Absom acquired an 80 percent interest in Deter on January 1, 2015, in exchange for various considerations totaling $1,025,000.At the acquisition date Deter's book value was $1,125,000.Deter owned equipment that was undervalued at the date of acquisition by $50,000, with a ten-year remaining life.In addition, Deter had fully amortized trademarks with a remaining five-year life and a fair value of $80,000.

Reported income and dividends for Deter for 2015 and 2016 are as follows:

1)Determine the method of consolidation used by Absom for the Deter acquisition.

2)Prepare the "schedule" that allocates the purchase price and determines the amount of Goodwill, if any, including the application of amortization of the unrecorded asset values.6 points.

3)Prepare the consolidation worksheet adjustment entries for 2017, including any supporting schedules as necessary.11 points.

4)Prepare consolidation worksheet for year-ended December 31, 2017, including posting the adjusting entries correctly.8 points.

5)Prepare schedule supporting the entry for *C, adjusting Retained Earnings.4 points.

6)Provide a schedule supporting the allocation of assets to the non-controlling interest as of December 31, 2017.4 points.

7)Provide a schedule supporting the allocation of income to the non-controlling interest as of December 31, 2017.2 points.