On January 1, 2009, Alpha acquired 80 percent of Delta. Of Delta’s total business fair value, $125,000 was allocated to copyrights with a 20-year remaining life. Subsequently, on January 1, 2010, Delta obtained 70 percent of Omega’s outstanding voting shares. In this second acquisition, $120,000 of Omega’s total business fair value was assigned to copyrights that had a remaining life of 12 years. Delta’s book value was $490,000 on January 1, 2009, and Omega reported a book value of $140,000 on January 1, 2010.

Delta has made numerous inventory transfers to Alpha since the business combination was formed. Unrealized gains of $15,000 were present in Alpha’s inventory as of January 1, 2011. During the year, $200,000 in additional intra-entity sales were made with $22,000 in gains remaining unrealized at the end of the period.

Both Alpha and Delta utilized the partial equity method to account for their investment balances. Following are the individual financial statements for the companies for 2011 with consolidated totals. Develop the worksheet entries necessary to derive these reported balances:

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Alpha Delta Com Omega Consolidated Company Company $ (900,000) (500,000) $(200,000) $1400,000) 627,000 489,250 500,000 294,000 (144,000) 240,000 Operating experses... income of subsidiary 50,000 (49,000) Separate company net income 250,000 180,000) $ 70,000) Consolidated net income of Delta Company of Omega Company S (283,750) 31,950 18,000 Noncontrolling interest in income Noncontrolling interest in income Controlling interest in consolidated net income Retained earnings, 1/1/11 Net income (above). Dividends paid $ (600,000) (400,000) $(100,000) $ (572,400) (180,000) 70,000) (233,800) 50,000 (250,000) 50,000 40,000 Retained earnings, 12/31/11. Cash and receivables nventory Investment in Delta Company Investment in Omega Company Property, plant, and equipment Copyrights. 5 (800,000) (540,000 20000) (756200) 5 262,000 206,000 70,000 538,000 738,000 160,000 290,000 528,000 310,000 238,000 420,000 316,000 270,000 1,006,000 206,250 1.600.000 S 1070.000 500.000 2.488.250 S (600,000) S 410,000) $(280,000) $1.290,000) (120,000) (100,000) (200,000) (540,000) (120,000) (756,200) Total assets Common stock Retained eamings, 12B1/11 Noncontrolling interest in Delta Company, 12/31/11 Noncontrolling interest in Omega Company, 12/31/11 (200,000) (800,000) -0(146,050) (96,000) Total liabilities and equities 51.600,000) 51070,000) 500000) 2.488.250)