THIS IS THE LONG ONE!!! 6. Assume that Big Co owns 88% of Little Co common stock. When purchased, all of Little's assets and liabilities had fair values equal to book value. At 1/1/23, Little had equity accounts of Common stock, $58000 and retained earnings, $119000 During 2023, Little reported earnings of 66000, and paid dividends of $14100 During 2023, Little reported earnings of 55000, and paid dividends of $13300 On 12/31/23, Little sold equipment to Big for $41000 Little had purchased it on 1/1/19 for $50000 The asset has an expected useful life of 10 years and no salvage value. 88 Big's % owneship of Little stock Little's 1/1/23 common stock Little's 1/1/23 Retained earnings Little's 2023 reported earnings Little's 2023 dividends paid Little's 2024 reported earnings Little's 2024 dividends paid Original cost of equipment Year of purchase Sales price 58000 119000 66000 14100 55000 13300 50000 19 41000 Required: a. Prepare all consolidation entries for 2023 b. Prepare all conolidation entries for 2024 (please note that to do the 2024 entries you'll need Little's 2024 beginning R/E, which you have to compute based on the 2023 information!) THIS IS THE LONG ONE!!! 6. Assume that Big Co owns 88% of Little Co common stock. When purchased, all of Little's assets and liabilities had fair values equal to book value. At 1/1/23, Little had equity accounts of Common stock, $58000 and retained earnings, $119000 During 2023, Little reported earnings of 66000, and paid dividends of $14100 During 2023, Little reported earnings of 55000, and paid dividends of $13300 On 12/31/23, Little sold equipment to Big for $41000 Little had purchased it on 1/1/19 for $50000 The asset has an expected useful life of 10 years and no salvage value. 88 Big's % owneship of Little stock Little's 1/1/23 common stock Little's 1/1/23 Retained earnings Little's 2023 reported earnings Little's 2023 dividends paid Little's 2024 reported earnings Little's 2024 dividends paid Original cost of equipment Year of purchase Sales price 58000 119000 66000 14100 55000 13300 50000 19 41000 Required: a. Prepare all consolidation entries for 2023 b. Prepare all conolidation entries for 2024 (please note that to do the 2024 entries you'll need Little's 2024 beginning R/E, which you have to compute based on the 2023 information!)