Using the data in the attached spreadsheet, perform the accounting required for the acquisition of Little, Inc. by Big, Inc. Within the worksheet, you are to: Select an accounting method (either cost or equity) and explain why you selected this method Perform the required journal entries Complete the consolidation worksheet Prepare the consolidated balance sheet, income statement, and statement of equity in good form

Part II Assume that Big Company decides to acquire 100% of Little Company stock for $200,000. Prepare the consolidated balance sheet and any supporting worksheets. Big Company Balance Sheet Assets, Liabilities & Equities Book Value Cash AR Inventory Land PP&E Accumulated Depreciation Patent Total Assets AP Common Stock Additional Paid In Capital Retained Earnings Total Liabilities & Equity $500,000 $10,000 $50,000 $40,000 $400,000 -$150,000 $0 $850,000 $110,000 $395,000 $300,000 $45,000 $850,000 Little Company Balance Sheet Assets, Liabilities & Equities Book Value Cash $35,000 AR $10,000 Inventory $65,000 Land $40,000 PP&E $40,000 Accumulated Depreciation -$5,000 Patent $0 Total Assets $185,000 AP $25,000 Common Stock $25,000 Additional Paid In Capital $35,000 Retained Earnings $100,000 Total Liabilities & Equity $185,000 Assume that Fair Value of all noncash assets are 25% greater than book value