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PROJECT FACTS

Ownership $($no dissolution$)80\%$

Acquisition Date $1/1/2023$

Consideration $($paid in cash$)$ $$396,000$

Fair value of NCI $$99,000$

STONY HARBOR FAIR VALUES AT ACQUISITION

Equipment $(5$ year remaining useful life$)$ $$105,000$

Software $(3$ year remaining useful life$)$ $$28,000$

Customer list $(10$ year useful life $-$ currently unrecognized$)$ $$45,000$

INTRAENTITY TRANSACTIONS

Prairie View sold Land to Stony Harbor on $1/2/2024.$ They still hold the land at the end of $2024.$

Sale Price $$38,000$

Book Value $$30,000$

Stony Harbor sold inventory to Prairie View in $2024.$

Sales price $$66,000$

Cost $$52,000$

Gross Profit $\%21\%$

$\%$ Remaining at yearend $25\%$

Prairie View owes Stony Harbor at the end of $2024$ $$20,000$

Stony Harbor Balance Sheet $1/1/2023$

Assets

Cash $41,700$

Accounts Receivable $95,600$

Inventory $185,200$

Land $46,000$

Equipment $($net$)85,000$

Software $($net$)25,000$

Total Assets $478,500$

Liabilities and Equity

Liabilities $102,500$

Common Stock $20,000$

Additional Paid$-$in Capital $205,000$

Retained Earnings $151,000$

Total Liabilities and Equity $478,500$

STONY HARBOR'S RETAINED EARNINGS CHANGES

$2023$ Income $$45,000$

$2023$ Dividends $$12,000$

$2024$ Income $$43,000$

$2024$ Dividends $$16,000$

Acquisition Journal Entry

DR CR

Investment in Stony Harbor $$396,000\mathrm{.}00$

Cash $$396,000\mathrm{.}00$

Fair$-$Value Allocation Schedule

Total Fair Value $$495,000\mathrm{.}00$

Book Value $$(376,000\mathrm{.}00)$ Useful Life Amortization

Excess Initial Value $$119,000\mathrm{.}00$

to Equipment $$20,000\mathrm{.}005$ $$4,000\mathrm{.}00$

to Software $$3,000\mathrm{.}003$ $$1,000\mathrm{.}00$

to Customer List $$45,000\mathrm{.}0010$ $$4,500\mathrm{.}00$

to Goodwill $$51,000\mathrm{.}00$ $$9,500\mathrm{.}00$

Goodwill Allocation Schedule

CI NCI Total

$$396,000\mathrm{.}00$ $$99,000\mathrm{.}00$ $$495,000\mathrm{.}00$

$$355,200\mathrm{.}00$ $$88,800\mathrm{.}00$ $$444,000\mathrm{.}00$

$$40,800\mathrm{.}00$ $$10,200\mathrm{.}00$ $$51,000\mathrm{.}00$

Initial investment, $1/1/23$ $$396,000\mathrm{.}00$

Dividends $$(9,600\mathrm{.}00)$

Income of Stony Harbor $$36,000\mathrm{.}00$

Amortization $$(7,600\mathrm{.}00)$

Investment in Stony Harbor $12/31/23$ $$414,800\mathrm{.}00$

Dividends $$(12,800\mathrm{.}00)$

Income of Stony Harbor $$34,400\mathrm{.}00$

Amortization $$(7,600\mathrm{.}00)$

Deferred profit $$(2,800\mathrm{.}00)$

Deferred gain on sale of land $$(8,000\mathrm{.}00)$

Investment in Stony Harbor $12/31/24$ $$418,000\mathrm{.}00$

Complete the consolidation worksheet below. Start by filling in the yellow squares for Prairie View's trial balance. Use formulas whenever possible $($calculating

values or totaling rows$/$columns$).$ Make sure your debits and credits are being added$/$subtracted correctly. All consolidation entry values need to be linked to the

trial balance or other tabs$.$ If any additional schedules are needed, place them below the consolidation worksheet.

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