On January 1, 2017, Lowell Corporation acquire 60,000 shares of Boston's outstanding voting stock, representing a 60 percent ownership Interest. Lowell pald $9 per share to a group of Boston Corporation shareholders, and the remaining 40,000 shares of Boston continued to trade in the market close to its recent average of $7.50 per share both before and after the acquisition by Lowell. Boston's acquisition date balance sheet follows: Current assets $ 16,500 Liabilities $249,500 Property and equipment (net) 310,500 Common stock 100,000 Patents 222,500 Retained earnings 200,000 $549,500 $549,500 At the acquisition, Lowell determined Boston's equipment (5-year remaining life) to be undervalued by $42,000, and there are unrecorded patents (10-year remaining life) worth $398,900. Any remaining excess of Boston 's acquisition-date fair value over its book value was attributed to goodwill. The companies' financial statements for the year ending December 31, 2018, follow: Lowell Boston Sales $ (489,000) $(453,500) Cost of goods sold 248,200 212,500 Depreciation expense 61,000 31,500 Amortization expense 16,500 18,500 Other operating expenses 62,000 56,000 Equity In Boston earnings (52,026) 0 Separate company net Income $ (153,326) $ (135,000) Retained earnings 1/1 Net Income Dividends declared Retained earnings 12/31 $ (822,700) $(364,000) (153,326) (135,000) 50,000 30,000 $ (926,026) $(469,000) Current assets Investment in Boston Property and equipment (net) Patents Total assets $ 127,500 $ 106,500 643,452 0 862,000 284,000 154,000 181,500 $ 1,786,952 $ 572,000 Liabilities Common stock - Lowell Common stock - Boston Retained earnings 12/31 Total liabilities and owners' equity $ (540,926) $ (3,000) (320,000) 0 0 (100,000) (926,026) (469,000) $(1,786,952) $(572,000) At year-end, there were no Intra-entity receivables or payables. Required: Prepare a worksheet to determine the amounts that should appear on Lowell's December 31, 2018, consolidated financial statements. Worksheet Prepare a worksheet to determine the amounts that should appear on Lowell's December 31, 2018, consolidated financial statements. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and credit columns should be entered as positive. Negative amounts for the Noncontrolling Interest and Consolidated Totals columns should be entered with a minus sign.) Show less LOWELL CORPORATION AND BOSTON CORPORATION Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Noncontrolling Consolidated Accounts Lowell Boston Debit Credit Interest Totals Sales S (489,000) $ (453,500) Cost of goods sold 248.200 212,500 Depreciation expense 61,000 31.500 Amortization expense 16.500 18,500 Other operating expenses 62.000 56.000 Equity in Boston earnings (52,026) Separate company net income S (153,326) $ (135,000) Consolidated net income $ 0 Noncontrolling interest in Consolidated NI Controlling interest net income $ 0 Retained earnings, 1/1/18 $ (822,700) $ (364,000) Net income (153,326) (135,000) Dividends declared 50,000 30.000 Retained earnings, 12/31 S (926,026) $ (460,000) 0 Current assets s 127.500 $ 106,500 Investment in Boston, Inc 643,452 Property and equipment (net) 862.000 284.000 Patents 154.000 181.500 0 0 Goodwill 0 0 Total assets $ 1,786,952 $ 572.000 $ 0 (540,926) (320,000) (3.000) (100,000) Liabilities Common stock Noncontrolling interest Retained earnings, 12/31 (469,000) (926,026) S (1.786,952) Total liabilities and equities $ (572,000) $ 0 $ 0 $ 0 On January 1, 2017, Lowell Corporation acquire 60,000 shares of Boston's outstanding voting stock, representing a 60 percent ownership Interest. Lowell pald $9 per share to a group of Boston Corporation shareholders, and the remaining 40,000 shares of Boston continued to trade in the market close to its recent average of $7.50 per share both before and after the acquisition by Lowell. Boston's acquisition date balance sheet follows: Current assets $ 16,500 Liabilities $249,500 Property and equipment (net) 310,500 Common stock 100,000 Patents 222,500 Retained earnings 200,000 $549,500 $549,500 At the acquisition, Lowell determined Boston's equipment (5-year remaining life) to be undervalued by $42,000, and there are unrecorded patents (10-year remaining life) worth $398,900. Any remaining excess of Boston 's acquisition-date fair value over its book value was attributed to goodwill. The companies' financial statements for the year ending December 31, 2018, follow: Lowell Boston Sales $ (489,000) $(453,500) Cost of goods sold 248,200 212,500 Depreciation expense 61,000 31,500 Amortization expense 16,500 18,500 Other operating expenses 62,000 56,000 Equity In Boston earnings (52,026) 0 Separate company net Income $ (153,326) $ (135,000) Retained earnings 1/1 Net Income Dividends declared Retained earnings 12/31 $ (822,700) $(364,000) (153,326) (135,000) 50,000 30,000 $ (926,026) $(469,000) Current assets Investment in Boston Property and equipment (net) Patents Total assets $ 127,500 $ 106,500 643,452 0 862,000 284,000 154,000 181,500 $ 1,786,952 $ 572,000 Liabilities Common stock - Lowell Common stock - Boston Retained earnings 12/31 Total liabilities and owners' equity $ (540,926) $ (3,000) (320,000) 0 0 (100,000) (926,026) (469,000) $(1,786,952) $(572,000) At year-end, there were no Intra-entity receivables or payables. Required: Prepare a worksheet to determine the amounts that should appear on Lowell's December 31, 2018, consolidated financial statements. Worksheet Prepare a worksheet to determine the amounts that should appear on Lowell's December 31, 2018, consolidated financial statements. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and credit columns should be entered as positive. Negative amounts for the Noncontrolling Interest and Consolidated Totals columns should be entered with a minus sign.) Show less LOWELL CORPORATION AND BOSTON CORPORATION Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Noncontrolling Consolidated Accounts Lowell Boston Debit Credit Interest Totals Sales S (489,000) $ (453,500) Cost of goods sold 248.200 212,500 Depreciation expense 61,000 31.500 Amortization expense 16.500 18,500 Other operating expenses 62.000 56.000 Equity in Boston earnings (52,026) Separate company net income S (153,326) $ (135,000) Consolidated net income $ 0 Noncontrolling interest in Consolidated NI Controlling interest net income $ 0 Retained earnings, 1/1/18 $ (822,700) $ (364,000) Net income (153,326) (135,000) Dividends declared 50,000 30.000 Retained earnings, 12/31 S (926,026) $ (460,000) 0 Current assets s 127.500 $ 106,500 Investment in Boston, Inc 643,452 Property and equipment (net) 862.000 284.000 Patents 154.000 181.500 0 0 Goodwill 0 0 Total assets $ 1,786,952 $ 572.000 $ 0 (540,926) (320,000) (3.000) (100,000) Liabilities Common stock Noncontrolling interest Retained earnings, 12/31 (469,000) (926,026) S (1.786,952) Total liabilities and equities $ (572,000) $ 0 $ 0 $ 0