WORKSHEET ASSIGNMENTS MICROSOFT EXCEL

The project assignment will count for $10$ percent in your final grade.

You will be required to prepare a worksheet to consolidate the financial statements of two companies

applying the acquisition method $($Chapter $4,$ Number $32,$ Page $206)$

The project should show the $5$ different journal entries and linking the journal entries to the

worksheet.

The Financial Statements should consist of the Income Statement, Statement of Financial Position,

and Statement of Changes in Owners' Equity.

The project should be on Excel using various advanced formulas. Each number must be a formula or

link to other cell.

Each student is to work individually on the project assignment.

The project should be upload to Brightspace in Excel format. On January $1,2023,$ Perlman Corporation exchanged $$1,710,000$ cash for $90$ percent of the outstanding voting stock of Stein Company.

The consideration transferred by Perlman provided a reasonable basis for assessing the total January $1,2023,$ fair value of Stein

Company. At the acquisition date, Stein reported the following owners' equity amounts in its balance sheet:

In determining its acquisition offer, Perlman noted that the values for Stein's recorded assets and liabilities approximated their fair values.

Perlman also observed that Stein had developed software internally with an assessed fair value of $$800,000$ that was not reflected on

Stein's books. Perlman expected both cost and revenue synergies from the combination.

At the acquisition date, Perlman prepared the following fair$-$value allocation schedule: At December $31,2024,$ the two companies report the following balances: At year$-$end, there were no intra$-$entity receivables or payables.

a$.$ Determine the consolidated balances for this business combination as of December $31,2024.$

b$.$ If instead the noncontrolling interest's acquisition$-$date fair value is assessed at $$167,500,$ what changes would be evident in the

consolidated statements?