NEED HELP WITH PART D ONLY.

Eliminating Entries $($including Goodwill Impairment$)$ and Worksheets

for Various Years LO$1$ LO $6$

On January $1,2013,$ Porter Company purchased an $\backslash (80\backslash \%\backslash )$ interest in the capital stock of Salem Company for $\backslash (\backslash$$ $850,000\backslash ).$ At that time, Salem Company had capital stock of $\backslash (\backslash$$ $550,000\backslash )$ and retained earnings of $\backslash (\backslash$$ $80,000\backslash ).$

Differences between the fair value and the book value of the identifiable assets of Salem Company were as follows:

The book values of all other assets and liabilities of Salem Company were equal to their fair values on January $1,2013.$ The equipment had a remaining life of five years on January $1,2013.$ The inventory was sold in $2013.$

Salem Company's net income and dividends declared in $2013$ and $2014$ were as follows:

Year $2013$ Net Income of $\backslash (\backslash$$ $100,000\backslash )$; Dividends Declared of $\backslash (\backslash$$ $25,000\backslash )$

Year $2014$ Net Income of $\backslash (\backslash$$ $110,000\backslash )$; Dividends Declared of $\backslash (\backslash$$ $35,000\backslash )$

Required:

A$.$ Prepare a Computation and Allocation Schedule for the difference between book value of equity acquired and the value implied by the purchase price.

B$.$ Present the eliminating$/$adjusting entries needed on the consolidated worksheet for the year ended December $31,2013.($It is not necessary to prepare the worksheet.$)$

$1.$ Assume the use of the cost method.

$2.$ Assume the use of the partial equity method.

$3.$ Assume the use of the complete equity method.

C$.$ Present the eliminating$/$adjusting entries needed on the consolidated worksheet for the year ended December $31,2014.($It is not necessary to prepare the worksheet.$)$

$1.$ Assume the use of the cost method.

$2.$ Assume the use of the partial equity method.

$3.$ Assume the use of the complete equity method.

Use the following financial data for $2015$ for requirements D through $\backslash ($ G $\backslash ).$

Required:

D$.$ Prepare a consolidated financial statements workpaper for the year ended December $31,2015.$ Although no goodwill impairment was reflected at the end of $2013$ or $2014,$ the goodwill impairment test conducted at December $31,2015$ revealed implied goodwill from Salem to be only $\backslash (\backslash$$ $150,000\backslash ).$ The impairment has not been recorded in the books of the parent. $($Hint: You can infer the method being used by the parent from the information in its trial balance.$)$

E$.$ Prepare a consolidated statement ended December $31,2015.$

F$.$ Describe the effect on the consolic ition and a consolidated income statement for the year pricing its inventory and there has $\backslash ($ L $\backslash )$

Salem Company uses the LIFO cost flow assumption in e in ending inventory quantities since $2013.$

G$.$ Prepare an analytical calculation of consolidated retained earnings for the year ended December $31,2015.$