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On January $1,2023,$ Mona, Incorporated, acquired $80$ percent of Lisa Company's common stock as well as $60$ percent of its preferred shares. Mona paid $$65,000$ in cash for the preferred stock, with a call value of $110$ percent of the $$50$ per share par value. The remaining $40$ percent of the preferred shares traded at a $$34,000$ fair value. Mona paid $$552,800$ for the common stock. At the acquisition date, the noncontrolling interest in the common stock had a fair value of $$138,200.$ The excess fair value over Lisa's book value was attributed to franchise contracts of $$40,000.$ This intangible asset is being amortized over a $40-$year period. Lisa pays all preferred stock dividends $($a total of $$8,000$ per year$)$ on an annual basis. During $2023,$ Lisa's book value increased by $$50,000.$

On January $2,2023,$ Mona acquired one$-$half of Lisa's outstanding bonds payable to reduce the business combination's debt position. Lisa's bonds had a face value of $$100,000$ and paid cash interest of $10$ percent per year. These bonds had been issued to the public to yield $14$ percent. Interest is paid each December $31.$ On January $2,2023,$ these bonds had a total $$88,350$ carrying amount. Mona paid $$53,310,$ indicating an effective interest rate of $8$ percent.

On January $3,2023,$ Mona sold Lisa fixed assets that had originally cost $$100,000$ but had accumulated depreciation of $$60,000$ when transferred. The transfer was made at a price of $$120,000.$ These assets were estimated to have a remaining useful life of $10$ years.

The individual financial statements for these two companies for the year ending December $31,2024,$ are as follows:

Accounts

Mona, Incorporated Lisa Company

Required:

a$.$ What consolidation worksheet adjustments would have been required as of January $1,2023,$ to eliminate the subsidiary's common and preferred stocks?

b$.$ What consolidation worksheet adjustments would have been required as of December $31,2023,$ to account for.Mona's purchase of Lisa's bonds?

c$.$ What consolidation worksheet adjustments would have been required as of December $31,2023,$ to account for the intra$-$entity sale of fixed assets?

d$.$ Assume that consolidated financial statements are being prepared for the year ending December $31,2024.$ Calculate the consolidated balance for each of the following accounts:

Franchises

Fixed Assets

Accumulated Depreciation

Expenses

The individual financial statements for these two companies for the year ending December

Note: Credits are indicated by parentheses.

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