CONSOLIDATION WORKSHEET PROBLEM 1. in this project Goodwill is called "intangibles" and amortized over a period of time ( if this amount is 240,000 over 10 years, at 12/31/x3 worksheet intangible will be (240,000 -24,000) 216,000, x4 intangible will be 192,000 and so forth) 2. Project : focus on the worksheet for 2004 - this has intercompany sales, use 20x3 as an example. (once you do x4, you can make progress on x5 & x6 - you can leave the bond for last) 3. To start the project - you should do some preliminary calculations: figure out 100% value of the subsidiary, allocation of FV-BV schedule this out for the 20x3-6, then calculate the controlling % of these items and non-controlling % 4. Bonds affect 20x5 and 20x6 - calculations need to be done 5. Basic worksheet adjustments: Steps needed to be done on the worksheets: 1. remove income from Sub 2. remove the sub capital and r/e 3. remove dividend payable/recieviable 4. intercompany sales - i.e. Gross Profit in ending inventory this is for the worksheet bonds are a special intercompany item 5. amortization of differences FV-BV