use initial value method

100% Plant Company acquired of the common stock of Shoot Company on January 1, year one, for $600,000 On that date, Shoot had the following trial balance. account debit credit Additional paid in capital $100,000 Building (10-year life) $250,000 Common stock 170,000 Current assets 180,000 Equipment (6-yr life) 160,000 Land 110,000 Liabilities (due in 4 years) 310,000 Retained earnings 1/year 1 120,000 Totals $700,000 $700.000 Totals $700,000 $700.000 During year one, Shoot reported net income of During year one, Shoot paid dividends of $50,000 $30,000 During year two, Shoot reported net income of During year two, Shoot paid dividends of $80,000 $40,000 On January 1 year one, fair values were: Land $146,000 Building $265,000 Equipment $196,000 There was no impairment of any goodwill arising from the acquisition. Problem 4. Use the data for the Plant Company acquisition of the Shoot Company to prepare the consolidation worksheet entries for December 31 of year one. Problem 5. Use the data for the Plant Company acquisition of the Shoot Company to prepare the consolidation worksheet entries for December 31 of year two