This a merger and acquisition question. I need journal entries necessary to consolidate the two corporations and provide Income Statements and Balance Sheets for each year where appropriate. More of the instructions are on the problem. I need this for all 5 years.

, 2008, Daddy Corporation purchased 80 % of the outstanding On January by $50.000 on their books. . ction it was found that Baby Corporation had a building tha undervalued f Baby corporation. Upon l other book values reflected fair values. The building is expected to remain in service for 10 more vears and have no residual value. The balance sheet of each corporation immediately following the acquisition by Daddy Corp and each subsequent year end are presented below. Daddy Corporation uses the Equity method to adjust the Investment in Baby account during the year (assume that Daddy Corporation will have recognized Net Income and Dividends prior to the release journal entries necessaryto consolidate the two corporations and provide Income Statements and Balance Sheets for each year where appropriate. of the financial statements for consolidation). Make any At Acquisition Year 1 Year 3 Year 4 Year 5 Year 2 Daddy Corp Baby Corp Baby Corp Daddy Corp Baby Corp Daddy Corp Baby Corp Daddy Corp Daddy Corp Baby Corp Daddy Corp Baby Corp Inventory Other Current Assets 10,000 61.000 15.000 75,000 20,000 73.000 30,000 96.000 35.000 40,000 25,000 75.000 35.000 50.000 90.000 118.000 168.000 85.000 194,000 104.000 60,000 75,000 125,000 160,000 Building 250.000 200,000 250,000 200.000 250,000 200,000 250,000 200,000 250,000 200,000 525.000 200,000 (100,000) (140,000) Accumulated Depreciation (50,000) (100,000) (62,500) (110,000) (75,000) (120.000) (87,500) (130,000) (126,250) (150,000) 252,000 284,000 332,000 Investment in Baby Corp 240,000 268,000 304,000 Ligbilities and Owners' Equity Current Liabilities (50,000) (30,000) (34,500) (20,000) (100,000) (20,000) (10,000) (10,000) (200,000] (416.0001 (10,000) (40,750) (100.000) Common Stock (200.000) (100,000) (200,000) (200.000) (100.000) (100,000) (200,000) (100,000) (200,000) (356,000) Retained Earnings (30,000) (290 000) (290,000) (30,000) (45,000) (65.000) (473.500) (85,000) (544,000) (110.000) Income Statement Items (180,000) (200,000) (202,500) (150,000) Sales (150,000) (80,000) (100.000) (120,000) (125.000) (225.000) 100.000 140,000 162.500 90,000 160.000 Expenses 60 000 75,000 90,000 175,000 100.000 Dividends Declared 5.000 5.000 10.000 15.000 10.000 , 2008, Daddy Corporation purchased 80 % of the outstanding On January by $50.000 on their books. . ction it was found that Baby Corporation had a building tha undervalued f Baby corporation. Upon l other book values reflected fair values. The building is expected to remain in service for 10 more vears and have no residual value. The balance sheet of each corporation immediately following the acquisition by Daddy Corp and each subsequent year end are presented below. Daddy Corporation uses the Equity method to adjust the Investment in Baby account during the year (assume that Daddy Corporation will have recognized Net Income and Dividends prior to the release journal entries necessaryto consolidate the two corporations and provide Income Statements and Balance Sheets for each year where appropriate. of the financial statements for consolidation). Make any At Acquisition Year 1 Year 3 Year 4 Year 5 Year 2 Daddy Corp Baby Corp Baby Corp Daddy Corp Baby Corp Daddy Corp Baby Corp Daddy Corp Daddy Corp Baby Corp Daddy Corp Baby Corp Inventory Other Current Assets 10,000 61.000 15.000 75,000 20,000 73.000 30,000 96.000 35.000 40,000 25,000 75.000 35.000 50.000 90.000 118.000 168.000 85.000 194,000 104.000 60,000 75,000 125,000 160,000 Building 250.000 200,000 250,000 200.000 250,000 200,000 250,000 200,000 250,000 200,000 525.000 200,000 (100,000) (140,000) Accumulated Depreciation (50,000) (100,000) (62,500) (110,000) (75,000) (120.000) (87,500) (130,000) (126,250) (150,000) 252,000 284,000 332,000 Investment in Baby Corp 240,000 268,000 304,000 Ligbilities and Owners' Equity Current Liabilities (50,000) (30,000) (34,500) (20,000) (100,000) (20,000) (10,000) (10,000) (200,000] (416.0001 (10,000) (40,750) (100.000) Common Stock (200.000) (100,000) (200,000) (200.000) (100.000) (100,000) (200,000) (100,000) (200,000) (356,000) Retained Earnings (30,000) (290 000) (290,000) (30,000) (45,000) (65.000) (473.500) (85,000) (544,000) (110.000) Income Statement Items (180,000) (200,000) (202,500) (150,000) Sales (150,000) (80,000) (100.000) (120,000) (125.000) (225.000) 100.000 140,000 162.500 90,000 160.000 Expenses 60 000 75,000 90,000 175,000 100.000 Dividends Declared 5.000 5.000 10.000 15.000 10.000