THIS IS A CONTINUATION OF THE 90% PROBLEM

It is now December 31st 2022 and the 2 companies have the following financial statements:

note: the only stock transaction for Voldomort was the purchase of Dumbledore Dumbledore Voldomort WSD WSC CONSOLIDATED

cash 65000 550000 1

accounts receivable 40000 500000 2

inventory 50000 550000 3

equipment 40000 110000 4

accumulated dep. Equipment 18000 42000 5

Building 100000 200000 6

accumulated dep. Building 20000 60000 7

land 90000 800000 8

Investment in Dumbledore 0 A 9

total assets 347000 B 10 11

accounts payable 30000 300000 12 13

common stock $1 par 10000 150000 14

apic 90000 1950000 15

retained earnings 217000 C 16 17

Income Statement 18

sales 100000 900000 19 cogs 40000 400000 20 gross profit 60000 500000 21 dep exp equip 8000 22000 22 dep exp bldg 10000 20000 23 invest income 0 D 24 net income 42000 E 25 26 27 On January 2nd Voldomort acquired 9000 shares of Dumbledore stock by issuing 28 20,000 shares of its common stock to the owners of Dumbledore. On January 2nd Voldomort's 29 stock was selling for $50 per share. Additional information is as follows: FAIR MARKET VALUE OF DUMBLEDORE'S ASSETS Accounts receivable $ 40,000.00 inventory $ 50,000.00 equipment $ 70,000.00 land $ 70,000.00 in process R&D $ 30,000.00 Customer list $ 40,000.00 building $ 70,000.00 Both Dumbledore's and Voldomorts' buildings have a 10 year life straight line no salvage Both Dumbledore's and Voldomorts' equipment have a 5 year life straight line no salvage Customer list has a 10 year life no salvage REQUIRED; 1) LET ME KNOW WHAT METHOD YOU ARE USING COST, PARTIAL EQUITY, FULL EQUITY 2) MAKE ANY ENTRIES VOLDOMORT MAKES CONNECTED WITH INVESTMENT IN DUMBLEDORE AFTER JANUARY 2ND 3) MAKE THE NECESSARY WORKSHEET ENTIRES 4) PREPARE A CONSOLIDATED INCOME STATEMENT 5) PREPARE A CONSOLIDATED BALANCE SHEET hints:

a) remember Voldormort issued stock to acquire Dumbledore on 1/2/2022 and we know stock value b4 transaction from 90% problem b) don't forget Dumbledore and/or Voldomort may have had dividends c) don't forget beginning r/e from 90% question d) don't forget beginning NCI from 90% question