Title Subtitle Subtle Em Emphasis Intense El Strong Quote Intense. Subtle Ref. Intense Styles Problem 4. BONUS QUESTION 10 points On January 1, 2017. Adora Corporation acquired 100 percent of the outstanding voting stock of Alzah Corporation for 1-$2.099.600 cash. On the acquisition date Alush had the following balance sheet Cash Accounts receivable Land Equipment (net) $ 152.000 137.000 730,000 1,942,000 62,961,000 Accounts payable Long-term debt Conon stock Retained earnings 184,000 985,000 1,049,000 743,000 2,961,000 At the acquisition date, the following allocation was prepared Fair value of consideration transferred Book value acquired Excess air value over book value To in-process research and development To equipment (8-year remaining lite) To goodwill indefinite lite) $ 2,099,600 1,792,000 307,600 44,000 133,600 177,600 130,000 Although at acquisition date Adora had expected $44,000 in future benefits from Alvah in process research and development project, by the end of 2017 at was apparent that the research project was a failure with no future economic benefits On December 31, 2018, Adora and Alah submitted the following trial balances for consolidation. There were no intra-entity payable on that date Adora Alve Sales (3,795, 200) (1,166,250) Cost of goods sold 1,910,000 745,000 Depreciation expense 335,000 147,000 Other operating expenses 223,000 37,250 Subsidiary income (220, 300) 0 Net Income $ (1,647,500) $ (237.000) Retained earnings 1/1/18 6 (3,052,500) $ (936,000) Net income (1,647,500) (237.000) Dividends declared 300,000 26,225 Retained earnings 12/31/18 (4.400,000) 1,146.775) Cash 110, 025 $ 6,275 Accounts receivable 937 000 164,000 Inventory 908,000 613,000 Investment in GWBIES 2, 425,975 Land 3, 120.000 760,000 Equipment (net) 5,100.000 1942,500 Goodwi 11 354.000 0 Total assets 13,035,000 3,485,775 Accounts payable 6 1220,000) 5 2455,000 Long-tem debt $ (3,265,000) G (835,000) Common stock (5,150,000 01.049, 000) Retained earnings 12/31/18 (4,400,000) (2.146.375) Total abilities and equity (13,035, 000) (3,485,275) Show how Ador derved its December 31, 2018, Investment in Alyah account balance, b. Prepare a consolidated worksheet for Adora and Alak as of December 31, 2018