detailed explanation

do not handwrite

please solve parts a, b,c

Workpapers (year of acquisition, excess recorded for several items, and intercompan transactions) Zachary Corporation acquired 90 percent of Joseph Corporation's common stock on January 1, 2020, for $ 1640,000 cash. The stockholders' equity section of Joseph at this time consisted of $ 576,000 capital stock and $ 60,000 retained earnings. The difference between the fair value of Joseph and the underlying equity acquired in Joseph was due to a $ 16,000 overvaluation of Joseph's inventory, a $ 144,000 undervaluation of Joseph's buildings, a $ 48,000 unrecorded patent with a 20 year remaining life. Any additional excess was appropriately attributed to goodwill or gain on bargain purchase option. The inventory was sold by Joseph during 2020, and the buildings had a remaining useful life of 20 years. Straight line depreciation is used. Joseph owed Zachary $ 9,000 on accounts payable at December 31, 2020. The separate financial statements of Zachary and Joseph Corporations at and for the year ended December 31, 2020, are as follows (in thousands): Joseph 481.5 0.0 (310.0) (20.0) 151.5 60.0 (61.0) 150.5 Zachary Combined Income and Retained Earnings Statement for the year ended December 31, 2020: Sales 535.0 Income from Joseph 232.9 Cost of goods sold (320.0) Operating expenses (120.0) Net Income 327.9 Beginning retained earnings 150.0 Less Dividends (148.0) Ending retained earnings 329.9 + Zachary Assets Cash 61.0 Trade receivables, net 69.0 Dividends receivable 54.9 Inventories 88.0 Land 62.0 Buildings, net 160.0 Equipment, net 405.0 Investment in Joseph 818.0 Total 1,717.9 Joseph 44.0 76.0 0.0 84.0 294.0 650.0 300.0 0.0 1,448.0 Ligibilities & Stockholders' Equity Accounts payable Dividends payable Other liabilities Capital stock, $10 par Retained earnings Total 74.0 148.0 52.0 1,114.0 329.9 1.717.9 515.5 61.0 145.0 576.0 150.5 1,448.0 Requirements: carry alone decimal point in thousands Prepare a schedule to allocate the difference between the fair value of the investment in Joseph and the book value of the interest to identifiable and unidentifiable net assets. b Prepare a consolidation worksheet for inancial statements of Zachary and Joseph for the year ended December 31, 2020 Check come attributable to NCI Goodwilo gain on BPO) 25.9 (132.9) Workpapers (year of acquisition, excess recorded for several items, and intercompan transactions) Zachary Corporation acquired 90 percent of Joseph Corporation's common stock on January 1, 2020, for $ 1640,000 cash. The stockholders' equity section of Joseph at this time consisted of $ 576,000 capital stock and $ 60,000 retained earnings. The difference between the fair value of Joseph and the underlying equity acquired in Joseph was due to a $ 16,000 overvaluation of Joseph's inventory, a $ 144,000 undervaluation of Joseph's buildings, a $ 48,000 unrecorded patent with a 20 year remaining life. Any additional excess was appropriately attributed to goodwill or gain on bargain purchase option. The inventory was sold by Joseph during 2020, and the buildings had a remaining useful life of 20 years. Straight line depreciation is used. Joseph owed Zachary $ 9,000 on accounts payable at December 31, 2020. The separate financial statements of Zachary and Joseph Corporations at and for the year ended December 31, 2020, are as follows (in thousands): Joseph 481.5 0.0 (310.0) (20.0) 151.5 60.0 (61.0) 150.5 Zachary Combined Income and Retained Earnings Statement for the year ended December 31, 2020: Sales 535.0 Income from Joseph 232.9 Cost of goods sold (320.0) Operating expenses (120.0) Net Income 327.9 Beginning retained earnings 150.0 Less Dividends (148.0) Ending retained earnings 329.9 + Zachary Assets Cash 61.0 Trade receivables, net 69.0 Dividends receivable 54.9 Inventories 88.0 Land 62.0 Buildings, net 160.0 Equipment, net 405.0 Investment in Joseph 818.0 Total 1,717.9 Joseph 44.0 76.0 0.0 84.0 294.0 650.0 300.0 0.0 1,448.0 Ligibilities & Stockholders' Equity Accounts payable Dividends payable Other liabilities Capital stock, $10 par Retained earnings Total 74.0 148.0 52.0 1,114.0 329.9 1.717.9 515.5 61.0 145.0 576.0 150.5 1,448.0 Requirements: carry alone decimal point in thousands Prepare a schedule to allocate the difference between the fair value of the investment in Joseph and the book value of the interest to identifiable and unidentifiable net assets. b Prepare a consolidation worksheet for inancial statements of Zachary and Joseph for the year ended December 31, 2020 Check come attributable to NCI Goodwilo gain on BPO) 25.9 (132.9)