On January 1, 2016, Alpha acquired 80 percent of Delta. Of Delta's total business fair value,...

 

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On January 1, 2016, Alpha acquired 80 percent of Delta. Of Delta's total business fair value, $191,000 was allocated to copyrights with a 20-year remaining life. Subsequently, on January 1, 2017, Delta obtained 70 percent of Omega's outstanding voting shares. In this second acquisition, $145,800 of Omega's total business fair value was assigned to copyrights that had a remaining life of 12 years. Delta's book value was $655,000 on January 1, 2016 and Omega reported a book value of $164,000 on January 1, 2017. Delta has made numerous inventory transfers to Alpha since the business combination was formed. Intra-entity gross profits of $24,200 were present in Alpha's inventory as of January 1, 2018. During the year, $263,000 in additional intra-entity sales were made with $28,930 in Intra-entity gross profits in inventory remaining 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 2018 with consolidated totals. Alpha Company $ (909,200) 501,000 297,000 (220,800) Delta Consolidated Totals Сompany $ (693,510) 326,000 141,000 (49,490) $ (276,000) Omega Company $ (285,700) 131,000 84,000 Sales Cost of goods sold Operating expenses Income of subsidiary $(1,625,410) 699,730 543,700 Separate company net income $ (332,000) (70,700) Consolidated net income $ (381,980) Net income attributable to noncontrolling interest (Delta Company) Net income attributable to noncontrolling interest (Omega 50,643 17,565 $ (313,772) Company) Net income attributable to Alpha Company Retained earnings, 1/1/18 Net income (above) Dividends declared $ (732,500) (332,000) 50,000 $(1,014,500) $ (565,000) (276,000) 40,000 $ (801,000) $ (124,000) (70,700) 50,000 S (144,700) $ (691,056) (313,772) 50,000 $ (954,828) Retained earnings, 12/31/18 773,250 975,570 Cash and receivables 303,400 317,000 445,150 507,500 24,700 180,000 Inventory Investment in Delta Company Investment in Omega Company Property, plant, and equipment Copyrights 889,600 273,350 347,500 507,000 329,000 1,183,500 283,850 $ 3,216,170 $ 2,017,000 $ (802,500) (200,000) (1,814,500) $ 1,573,500 $ (652,500) (120,000) (801,000) Total assets 533,700 $ (289,000) (100,000) (144,700) Liabilities $(1,744,000) (200,000) (954,828) (207,482) (109,860) Common stock Retained earnings, 12/31/18 Noncontrolling interest in Delta Company, 12/31/18 Noncontrolling interest in Omega Company, 12/31/18 Total liabilities and equities $(2,017,000) $(1,573,500) $ (533,700) $(3,216,170) Develop the worksheet entries necessary to derive these reported balances: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) On January 1, 2016, Alpha acquired 80 percent of Delta. Of Delta's total business fair value, $191,000 was allocated to copyrights with a 20-year remaining life. Subsequently, on January 1, 2017, Delta obtained 70 percent of Omega's outstanding voting shares. In this second acquisition, $145,800 of Omega's total business fair value was assigned to copyrights that had a remaining life of 12 years. Delta's book value was $655,000 on January 1, 2016 and Omega reported a book value of $164,000 on January 1, 2017. Delta has made numerous inventory transfers to Alpha since the business combination was formed. Intra-entity gross profits of $24,200 were present in Alpha's inventory as of January 1, 2018. During the year, $263,000 in additional intra-entity sales were made with $28,930 in Intra-entity gross profits in inventory remaining 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 2018 with consolidated totals. Alpha Company $ (909,200) 501,000 297,000 (220,800) Delta Consolidated Totals Сompany $ (693,510) 326,000 141,000 (49,490) $ (276,000) Omega Company $ (285,700) 131,000 84,000 Sales Cost of goods sold Operating expenses Income of subsidiary $(1,625,410) 699,730 543,700 Separate company net income $ (332,000) (70,700) Consolidated net income $ (381,980) Net income attributable to noncontrolling interest (Delta Company) Net income attributable to noncontrolling interest (Omega 50,643 17,565 $ (313,772) Company) Net income attributable to Alpha Company Retained earnings, 1/1/18 Net income (above) Dividends declared $ (732,500) (332,000) 50,000 $(1,014,500) $ (565,000) (276,000) 40,000 $ (801,000) $ (124,000) (70,700) 50,000 S (144,700) $ (691,056) (313,772) 50,000 $ (954,828) Retained earnings, 12/31/18 773,250 975,570 Cash and receivables 303,400 317,000 445,150 507,500 24,700 180,000 Inventory Investment in Delta Company Investment in Omega Company Property, plant, and equipment Copyrights 889,600 273,350 347,500 507,000 329,000 1,183,500 283,850 $ 3,216,170 $ 2,017,000 $ (802,500) (200,000) (1,814,500) $ 1,573,500 $ (652,500) (120,000) (801,000) Total assets 533,700 $ (289,000) (100,000) (144,700) Liabilities $(1,744,000) (200,000) (954,828) (207,482) (109,860) Common stock Retained earnings, 12/31/18 Noncontrolling interest in Delta Company, 12/31/18 Noncontrolling interest in Omega Company, 12/31/18 Total liabilities and equities $(2,017,000) $(1,573,500) $ (533,700) $(3,216,170) Develop the worksheet entries necessary to derive these reported balances: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)