On January $1,2024,$ Mickey Company acquired $100$ percent of the outstanding common stock of Mouse Company. To acquire these shares, Mickey issued to the owners of Mouse Company $$150,000$ cash, $$400,000$ in long$-$term liabilities and $10,000$ shares of common stock having a par value of $$2$ per share but a fair value of $$25$ per share. Mickey paid $$70,000$ to accountants, lawyers, and brokers for assistance in the acquisition and another $$25,000$ in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: Mickey's appraisal of Mouse's fair values deemed three accounts to be undervalued: Inventory by $$15,000,$ Land by $$37,000,$ and Buildings by $$30,000$; and one account to be overvalued: Receivables by $$20,000.$ In addition, Mouse has $$125,000$ of In$-$Process Research and Development that has not been recorded.

Mickey's appraisal of Mouse's fair values deemed three accounts to be undervalued: Inventory by $\backslash (\backslash$$ $15,000\backslash ),$ Land by $\backslash (\backslash$$ $37,000\backslash ),$ and Buildings by $\backslash (\backslash$$ $30,000\backslash )$; and one account to be overvalued: Receivables by $\backslash (\backslash$$ $20,000\backslash ).$ In addition, Mouse has $\backslash (\backslash$$ $125,000\backslash )$ of In$-$Process Research and Development that has not been recorded. Mickey plans to maintain Mouse's separate legal identify and to operate Mouse as a wholly owned subsidiary.

REQUIRED:

$1.$ Prepare Mickey's journal entries to record its acquisition of Mouse, related professional fees paid, and stock acquisition costs.

$2.$ Prepare the consolidation worksheet entries $\backslash ($ S $\backslash )$ and $\backslash ($ A $\backslash )$ to consolidate Mickey and Mouse Company.

$3.$ Prepare a worksheet to consolidate Mickey and Mouse Company.