you will have two case studies to complete. Both will involve completing a consolidation worksheet for two companies whose statements need to be consolidated. The first case will be due in Week $4.$ ?The second case will involve Intra$-$Entity Asset Transactions and will be due at the end of Week $6.$Case Study $1-$ ?Due Week $4$On January $1,2020,$ ?Innovus, Inc., acquired $100$ ?percent of the common stock of ChipTech Company for $$670,000$ ?in cash and other fair$-$value consideration. ChipTech's fair value was allocated among its net assets as follows:Case $1-$ ?Image $1$The December $31,2021,$ ?trial balances for the parent and subsidiary follow $($there were no intra$-$entity payables on that date$)$:Case $1-$ ?Image $2$Using Excel, compute consolidated balances for Innovus and ChipTech by completing the provided worksheet. The Excel Template can be accessed by clicking this linkLinks to an external site..?Case Study $2-$ ?Due Week $6$?On January $1,2020,$ ?James Company purchased $100$ ?percent of the outstanding voting stock of Nolan, Inc., for $$1,000,000$ ?in cash and other consideration. At the purchase date, Nolan had common stock of $$500,000$ ?and retained earnings of $$185,000.$ ?James attributed the excess of acquisition$-$date fair value over Nolan's book value to a trade name with an estimated $25-$year remaining useful life. James uses the equity method to account for its investment in Nolan.During the next two years, Nolan reported the following:Case $2-$ ?Image $1$Nolan sells inventory to James after a markup based on a gross profit rate. At the end of $2020$ ?and $2021,30$ ?percent of the current year purchases remain in James's inventory.Using the attached Excel template, compute the following:The Equity Method balance in James' Investment in Nolan, Inc., account as of December $31,2021$Worksheet adjustments for the December $31,2021$ ?adjustments of James and Nolan. Use the following Codes to designate the purpose of the journal entry:Journal Entry LegendFormulate your solution so that Nolan's gross profit rate on sales to James is treated as a variable.

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Fair Value Allocation Consideration Transferred Common Stock Retained Earnings Tradename 1/1/2020 Intra-entity Inventory Transfers (upstream) Cost 2020 Equity Earnings Dividends 12/31/2020 Balance Sales Inventory Intra.Profit 2020 2021 Investment Account 2021 Equity Earnings Dividends 12/31/2021 Balance Equity in Nolan Company Earnings 2020 Reported Net Income El Profit Amortization Equity Earnings 2021 Reported Net Income BI Profit El Profit Amortization Equity Earnings Step 1 Step 2 + Fair Value Allocation Consideration Transferred Common Stock Retained Earnings Tradename 1/1/2020 Intra-entity Inventory Transfers (upstream) Cost 2020 Equity Earnings Dividends 12/31/2020 Balance Sales Inventory Intra.Profit 2020 2021 Investment Account 2021 Equity Earnings Dividends 12/31/2021 Balance Equity in Nolan Company Earnings 2020 Reported Net Income El Profit Amortization Equity Earnings 2021 Reported Net Income BI Profit El Profit Amortization Equity Earnings Step 1 Step 2 +