Through the payment of $$11,643,000$ in cash, Drexel Company acquires voting control over Young Company. This price is paid for $60$

percent of the subsidiary's $110,000$ outstanding common shares $($ $$40$ par value$)$ as well as all $11,000$ shares of $8$ percent, cumulative,

$$100$ par value preferred stock. Of the total payment, $$3\mathrm{.}6$ million is attributed to the fully participating preferred stock with the

remainder paid for the common. This acquisition is carried out on January $1,2021,$ when Young reports retained earnings of $$11\mathrm{.}0$

million and a total book value of $$16\mathrm{.}5$ million. The acquisition$-$date fair value of the noncontrolling interest in Young's common stock

was $$5,362,000.$ On this same date, a building owned by Young $($with a $5-$year remaining life$)$ is undervalued in the financial records by

$$300,000,$ while equipment with a $10-$year remaining life is overvalued by $$120,000.$ Any further excess acquisition$-$date fair value is

assigned to a brand name with a $20-$year remaining life.

During $2021,$ Young reports net income of $$950,000$ while declaring $$440,000$ in cash dividends. Drexel uses the initial value method

to account for both of these investments.

Prepare appropriate consolidation entries for $2021.($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required"

in the first account field. Enter your answers in whole dollars and not in millions.$)$

Consolidation

Worksheet Entries

Prepare a combined entry for Consolidation Entries S and A$.$

Note: Enter debits before credits.Through the payment of $$11,643,000$ in cash, Drexel Company acquires voting control over Young Company. This price is paid for $60$ percent of the subsidiary's $110,000$ outstanding common shares $($$$40$ par value$)$ as well as all $11,000$ shares of $8$ percent, cumulative, $$100$ par value preferred stock. Of the total payment, $$3\mathrm{.}6$ million is attributed to the fully participating preferred stock with the remainder paid for the common. This acquisition is carried out on January $1,2021,$ when Young reports retained earnings of $$11\mathrm{.}0$ million and a total book value of $$16\mathrm{.}5$ million. The acquisition$-$date fair value of the noncontrolling interest in Young's common stock was $$5,362,000.$ On this same date, a building owned by Young $($with a $5-$year remaining life$)$ is undervalued in the financial records by $$300,000,$ while equipment with a $10-$year remaining life is overvalued by $$120,000.$ Any further excess acquisition$-$date fair value is assigned to a brand name with a $20-$year remaining life.

During $2021,$ Young reports net income of $$950,000$ while declaring $$440,000$ in cash dividends. Drexel uses the initial value method to account for both of these investments.

Prepare appropriate consolidation entries for $2021.($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions.$)$

A$.$ Prepare a combined entry for Consolidation Entries S and A$.$

B$.$ Prepare Consolidation Entry I$1$ for the dividends declared on preferred stock.

C$.$ Prepare Consolidation Entry I$1$ for the dividends declared on common stock.

D$.$ Prepare Consolidation Entry E to record amortization.