The question is in the file,Please show all your calculations. Thank you

INSTRUCTIONS: Part I - Please answer each question. Show your work so that partial credit can be awarded. Part II - Problem is to be completed using an excel spreadsheet and any further explanations on Word. Please show all your calculations. PART ONE: (50 Points) Each Group of Questions has a situational scenario that should be carefully analyzed before starting to answer the questions related to that scenario. A. On January 1, 2015, Parent Company acquired 90 percent ownership of Subsidiary Corporation, at underlying book value. The fair value of the noncontrolling interest at the date of acquisition was equal to 10 percent of the book value of Subsidiary Corporation. On Mar 17, 2015, Subsidiary purchased inventory from Parent for $90,000. Subsidiary sold the entire inventory to an unaffiliated company for $120,000 on November 21, 2015. Parent had produced the inventory sold to Subsidiary for $62,000. The companies had no other transactions during 2015. Based on the information given above, what amount of sales will be eliminated in consolidation? What amount of sales will be reported in the 2015 consolidated income statement? Based on the information given above, what amount of cost of goods sold will be reported in the 2015 consolidated income statement? Based on the information given above, what amount of consolidated net income will be assigned to the controlling shareholders for 2015? Based on the information given above was this an upstream or downstream transaction? B. On January 1, 2014, Gulliver Corporation acquired 80 percent of Sea-Gull Company's common stock for $160,000 cash. The fair value of the noncontrolling interest at that date was determined to be $40,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: At the date of the business combination, the book values of Sea-Gull's net assets and liabilities approximated fair value except for inventory, which had a fair value of $45,000, and land, which had a fair value of $60,000. Based on the preceding information, what amount of total inventory will be reported in `the consolidated balance sheet prepared immediately after the business combination? . Based on the preceding information, what amount of goodwill will be reported in the consolidated balance sheet prepared immediately after the business combination? Based on the preceding information, what amount of total assets will be reported in the consolidated balance sheet prepared immediately after the business combination? Based on the preceding information, what amount will be reported as noncontrolling interest in the consolidated balance sheet prepared immediately after the business combination? C. On January 1, 2015, Ramon Corporation acquired 75 percent of Tester Company's voting common stock for $300,000. At the time of the combination, Tester reported common stock outstanding of $200,000 and retained earnings of $150,000, and the fair value of the noncontrolling interest was $100,000. The book value of Tester's net assets approximated market value except for patents that had a market value of $50,000 more than their book value. The patents had a remaining economic life of five years at the date of the business combination. Tester reported net income of $40,000 and paid dividends of $10,000 during 2015. Based on the preceding information, what balance will Ramon report as its investment in Tester at December 31, 2015, assuming Ramon uses the equity method in accounting for its investment? Based on the preceding information, what are the eliminating entry needed to prepare the consolidated financial statements at December 31, 2015? D. D. Tower Corporation's controller has just finished preparing a consolidated balance sheet, income statement, and statement of changes in retained earnings for the year ended December 31, 2014. Tower owns 80 percent of Network Corporation's stock, which it acquired at underlying book value on November 1, 2011. At that date, the fair value of the noncontrolling interest was equal to 20 percent of Network Corporation's book value. The following information is available: Consolidated net income for 2014 was $160,000. Network reported net income of $50,000 for 2014. Tower paid dividends of $30,000 in 2014. Network paid dividends of $10,000 in 2014. Tower issued common stock on February, 18, 2014, for a total of $100,000. Consolidated wages payable decreased by $6,000 in 2014. Consolidated depreciation expense for the year was $15,000. Consolidated accounts receivable decreased by $20,000 in 2014. Bonds payable of Tower with a book value of $102,000 were retired for $100,000 on December 31, 2014. Consolidated amortization expense on patents was $10,000 for 2014. Tower sold land that it had purchased for $75,000 to a non-affiliate for $80,000 on June 10, 2014. Consolidated accounts payable decreased by $7,000 during 2014. Total purchases of equipment by Tower and Network during 2014 were $180,000. Consolidated inventory increased by $36,000 during 2014. There were no intercompany transfers between Tower and Network in 2014 or prior years except for Network's payment of dividends. Tower uses the indirect method in preparing its cash flow statement. Based on the preceding information, what amount will be reported in the consolidated cash flow statement as net cash provided by operating activities for 2014? Based on the preceding information, what amount will be reported in the consolidated cash flow statement as net cash used in investing activities for 2014? . Based on the preceding information, what amount will be reported in the consolidated cash flow statement as net cash used in financing activities for 2014? . Based on the preceding information, what was the change in cash balance for the consolidated entity for 2014? E. Electric Corporation holds 80 percent of Utility Company's voting common shares, acquired at book values, but none of its preferred shares. At the date of acquisition, the fair value of the noncontrolling interest was equal to 20 percent of the book value of Utility Company. Summary balance sheets for the companies on December 31, 2015, are as follows: Neither of the preferred issues is convertible. Electric's preferred pays a 8 percent annual dividend, and Utility's preferred pays a 12 percent dividend. Utility reported net income of $30,000 and paid a total of $10,000 of dividends in 2015. Electric reported income from its separate operations of $70,000 and paid total dividends of $25,000 in 2015. Based on the preceding information, what is the amount of earnings available to common shareholders reported in the consolidated financial statements for the year? Based on the preceding information, what is the consolidated earnings per share for 2015? Would your answer to both questions above be different if the parent owned 100% and why? .. PART TWO (50 Points) Fran Corporation acquired all outstanding $10 par value voting common stock of Brey Inc. on January 1, 2015, in exchange for 25,000 shares of its $20 par value voting common stock. On December 31, 2014, Fran's common stock had a closing market price of $30 per share on a national stock exchange. Fran accounts for its investment in Brey using the equity method. On December 31, 2015, the companies had condensed financial statements as follows: Additional Information At the acquisition date, the fair value of Brey's machinery exceeded its book value by $54,000. The excess cost will be amortized over the estimated average remaining life of six years. The fair values of all of Brey's other assets and liabilities were equal to their book values. At December 31, 2015, Fran's management reviewed the amount attributed to goodwill as a result of its purchase of Brey's common stock and concluded an impairment loss of $35,000 should be recognized in 2015. Intercompany Sales/Inventory Transactions During 2015, Fran purchased merchandise from Brey for $180,000, which included a 100 percent markup on Brey's cost. At December 31, 2015, Fran owed Brey $86,000 on these purchases, and $36,000 of this merchandise remained in Fran's inventory. Required 1. Prepare the book entries on Fran's books to account for the investment in Brey under the equity method for 2015. 2. Prepare the workpaper elimination entries 3. Post the workpaper entries to the consolidation worksheet. 4. Prepare formal Income Statement, Statement of Retained Earnings, and Balance Sheet for Consolidated entity