PLEASE INCLUDE ALL CALCULATIONS. THANKS!

Big Co acquired $80\%$ of the common stock for Little Co$.$ on $1/1/22$ for $$200,000.$ The fair value of the NC Interest on that date was $$50,000.$

Little$$s book value on that date was $$250,000,$ and all assets and liabilities had fair values equal to the book value.

In $2022,$ Little reported earnings of $$30,000$ and paid dividends of $$10,000.$

In $2022,$ Little reported earnings of $$40,000$ and paid dividends of $$15,000.$

The trial balance for $1/1/22,12/31/2022,$ and $12/31/2023$ are given below.

Required:

$1.$ Prepare appropriate equity method entries for each year.

$2.$ Prepare elimination entries at $1/1/22$ and complete the $$consolidation at acquisition: $(1/1/22)$ worksheet.

$3.$ Prepare elimination entries at $12/31/22$ and complete the $$consolidation at acquisition: $(12/31/22)$ worksheet.

$4.$ Prepare elimination entries at $12/31/23$ and complete the $$consolidation at acquisition: $(12/31/23)$ worksheet.

Please notice that the questions start at #$3!$

January $1,2022$

December $31,2022$

Big Little Consol. Sales $300000250000$ Expenses $250000220000$ Investment income $24000$ Net income $7400030000$ Income to NC Interest Income to controlling interest Beginning R$/$E $200000200000$ Add: Income $7400030000$ Less: Dividends $2000010000$ Ending R$/$E $254000220000$ Cash $3500022000$ Receivables $3600027000$ Inventory $4000042000$ Investment in Little $2160000$ PPE, net $250000240000$ Patents $2500015000$ Other assets $62000124000$ Accounts payable $6000050000$ Bonds payable $200000150000$ Common Stock $15000050000$ Retained earnings $254000220000$ NC Interest

December $31,2023$

Big Little dr cr Consol. Sales $300000280000$ Expenses $250000240000$ Investment income $320000$ Net income $8200040000$ Income to NC Interest Income to controlling interest Beginning R$/$E Add: Income $8200040000$ Less: Dividends $2000015000$ Ending R$/$E $316000245000$ Cash $4000030000$ Receivables $4500035000$ Inventory $5000035000$ Investment in Little $2360000$ PPE, net $240000230000$ Patents $2000010000$ Other assets $3500090000$ Accounts payable $4000035000$ Bonds payable $160000100000$ Common Stock $15000050000$ Retained earnings $316000245000$ NC Interest