Big Co acquired 100% of the common Stock of Little Co. on 1/1/22 for $450,000. Little's...

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Big Co acquired 100% of the common Stock of Little Co. on 1/1/22 for $450,000. Little's book value on that date was $300,000. Little had the following misvalued/unreported assets and liabilities: Land, undervalued by $10,000 Inventory, FIFO basis, undervalued by $5,000 Equipment, 10 year life, undervalued by $80,000 Customer list, 2 year life, valued at $20,000 but unreported on belance sheet Any remaining differential is attributed to goodwill Big Co uses the EQUITY METHOD to account for their investment in Little In 2022, Little reported earnings of $70,000 and paid dividends of $10,000 In 2023 Little reported earnings of $30,000 and paid dividends of $15,000. The trial belances for 1/1/22, 12/31/22, and 12/31/23 are given below. Required: Prepare elimination entries at 1/1/22 and complete the "Consolidation at acquisition" (1/1/22) worksheet 1. Prepare elimination entries at 1/1/22 and complete the "Consolidation at acquisition" (1/1/22) worksheet 2. Prepare elimination entries at12/31/23 and complete the "Consolidation at acquisition" (12/31/23) worksheet 3. Prepare elimination entries at12/31/22 and complete the "Consolidation at acquisition" (12/31/22) worksheet You HAVE to "work down" the Big and Little columns in the 12/31/22 worksheet to get the ending R/E values to plug into the 12/31/23 worksheet! Please note that there is no question 3 or question 13. 2 4 3 What is the value in cell F46 What is the value in cell F48 What is the value in cell M33 What is the value in cell M34 What is the value in cell M37 What is the value in cell M46? What is the value in cell M49 7 8 What is the value in cell 158? 9 What is the value in cell 158? 10 What is the value in cell M58? December 31, 2022 December 31, 2023 11 What is the value in cell P36? 12 What is the value in cell T37? Sales 13 What is the value in cell T50 Cost of goods sold 14 What is the value in cell T58? Depreciation expense Other expenses Investment income Net income 350000 210000 130000 40000 30000 30000 20000 47000 Little 270000 lar cr Consol. Big Little dr Consol Sales Cost of goods sold Depreciation expense 370000 280000 220000 160000 40000 30000 Other expenses Investment income Net income 50000 60000 72000 30000 Beginning R/E Add: Income Less: Dividends 300000 200000 Beginning R/E Add: Income 20000 10000 Less: Dividends 20000 15000 January 1, 2022 Ending R/E Ending R/E Little dr cr Consol. Cash Receivables Inventory 30000 20000 Cash 35000 22000 Cash 40000 30000 35000 30000 Receivables 36000 27000 Receivables 43000 35000 45000 50000 Inventory 40000 42000 Inventory 50000 35000 Investment in Little 450000 Investment in Little 487000 Investment in Little 484000 Land 40000 60000 Land 40000 60000 Land 40000 60000 Equipment, net 260000 230000 Equipment, net 220000 220000 Customer list Customer list Equipment, net Customer list 180000 190000 Patents 30000 20000 Goodwill Patents Goodwill 25000 15000 Patents 20000 10000 Goodwill Big Co acquired 100% of the common Stock of Little Co. on 1/1/22 for $450,000. Little's book value on that date was $300,000. Little had the following misvalued/unreported assets and liabilities: Land, undervalued by $10,000 Inventory, FIFO basis, undervalued by $5,000 Equipment, 10 year life, undervalued by $80,000 Customer list, 2 year life, valued at $20,000 but unreported on belance sheet Any remaining differential is attributed to goodwill Big Co uses the EQUITY METHOD to account for their investment in Little In 2022, Little reported earnings of $70,000 and paid dividends of $10,000 In 2023 Little reported earnings of $30,000 and paid dividends of $15,000. The trial belances for 1/1/22, 12/31/22, and 12/31/23 are given below. Required: Prepare elimination entries at 1/1/22 and complete the "Consolidation at acquisition" (1/1/22) worksheet 1. Prepare elimination entries at 1/1/22 and complete the "Consolidation at acquisition" (1/1/22) worksheet 2. Prepare elimination entries at12/31/23 and complete the "Consolidation at acquisition" (12/31/23) worksheet 3. Prepare elimination entries at12/31/22 and complete the "Consolidation at acquisition" (12/31/22) worksheet You HAVE to "work down" the Big and Little columns in the 12/31/22 worksheet to get the ending R/E values to plug into the 12/31/23 worksheet! Please note that there is no question 3 or question 13. 2 4 3 What is the value in cell F46 What is the value in cell F48 What is the value in cell M33 What is the value in cell M34 What is the value in cell M37 What is the value in cell M46? What is the value in cell M49 7 8 What is the value in cell 158? 9 What is the value in cell 158? 10 What is the value in cell M58? December 31, 2022 December 31, 2023 11 What is the value in cell P36? 12 What is the value in cell T37? Sales 13 What is the value in cell T50 Cost of goods sold 14 What is the value in cell T58? Depreciation expense Other expenses Investment income Net income 350000 210000 130000 40000 30000 30000 20000 47000 Little 270000 lar cr Consol. Big Little dr Consol Sales Cost of goods sold Depreciation expense 370000 280000 220000 160000 40000 30000 Other expenses Investment income Net income 50000 60000 72000 30000 Beginning R/E Add: Income Less: Dividends 300000 200000 Beginning R/E Add: Income 20000 10000 Less: Dividends 20000 15000 January 1, 2022 Ending R/E Ending R/E Little dr cr Consol. Cash Receivables Inventory 30000 20000 Cash 35000 22000 Cash 40000 30000 35000 30000 Receivables 36000 27000 Receivables 43000 35000 45000 50000 Inventory 40000 42000 Inventory 50000 35000 Investment in Little 450000 Investment in Little 487000 Investment in Little 484000 Land 40000 60000 Land 40000 60000 Land 40000 60000 Equipment, net 260000 230000 Equipment, net 220000 220000 Customer list Customer list Equipment, net Customer list 180000 190000 Patents 30000 20000 Goodwill Patents Goodwill 25000 15000 Patents 20000 10000 Goodwill