Answer Happy

Allen Company acquired 100 percent of Bradford Company's voting stock on January 1, 2017, by Issuing 10,000 shares of its $10 par value common stock (having a fair value of $17.50 per share). As of that date, Bradford had stockholders' equity totaling $112,150. Land shown on Bradford's accounting records was undervalued by $19.700. Equipment (with a five-year remaining life) was undervalued by $6,750. A secret formula developed by Bradford was appraised at $36,400 with an estimated life of 20 years. The following are the separate financial statements for the two companies for the year ending December 31, 2021. There were no Intra-entity payables on that date. Credit balances are indicated by parentheses. Allen Company Bradford Company $ (303,750) Revenues $ (521,000) Cost of goods sold Depreciation expense Subsidiary earnings 115,500 54,000 172,880 189,000 (131,080) (291,080) Net income $ (134,250) Retained earnings, 1/1/21 Net income (above) Dividends declared (762,000) (291,080) 175,500 $ (103,500) (134,250) 40,000 Retained earnings ,12/ 21 (877,580) $ (197,750) Current assets $ 101,500 374,000 309,750 Investment in Bradford Company Land 574,000 854,000 86,100 186,000 Buildings and equipment (net) Total assets $ 2,111,750 $ 373,600 $ (110,850) Current liabilities Common stock $ (544,170) (600,000) (90,000) (877,588) Additional paid-in capital (60,000) (5,000) (197,750) Retained earnings, 12/31/21 $(2,111,750) $ (373,600) Total liabilities and equity $ $ $ $
Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Complete the worksheet by consolidating the financial information for these two companies. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Input all amounts as positive values.) Show less A ALLEN AND SUBSIDIARY Consolidation Worksheet For Year Ending December 31, 2021 Consolidation Entries Ac unts Allen Co. Bradford Co. Debi Cre Consolidated Totals Income Statement Revenues S (521,000) $ (303,750) Cost of goods sold 172,000 115,500 Depreciation expense 189,000 54,000 Amortization expense 0 0 Equity in subsidiary earnings (131,080) 0 Net income S (291,080) $ (134,250) Statement of Retained Earnings Retained earnings 1/1 (762,000) (103,500) Net income (above) (291,080) (134,250) Dividends declared 175,500 40,000 S (877,580) $ (197,750) S 374,000 $ 101,500 0 309,750 574,000 86,100 854,000 188,000 0 0 373,600 $ 2,111,750 $ (544,170) (110,850) (600,000) (60,000) (90,000) (5,000) (877,580) (197,750) S (2,111,750) $ (373,600) $ < Req A2 Retained earnings 12/31 Balance Sheet Current assets Investment in Bradford Co. Land Buildings and equipment (net) Formula Total assets Current liabilities Common stock Additional paid-in capital Retained earnings 12/31 Total liabilities and equity 0 S Req B > 0