Reference no: EM132480796

Accounts Payable $50,

Accounts Receivable $40,

Additional Paid in Capital $50,

Building (4 year remaining life, net) $120,

Cash $60,

Common Stock $250,

Equipment (5 year remaining life, net) $200,

Inventory $90,

Land $80,

Long-term liabilities (mature end of Year 4) $150,

Retained earnings (Beg Year 1) $100, and

Supplies $10

Point 1: During year 1, Company B reported net income of $80 and paid dividends of $10. During Year 2, reported net income of $110, and paid dividends of $30.

Question 1: Company A acquires all the common stock of company B for $520 with cash. All Company B's accounts are estimated to have a fair value of the same as book value. Company A uses the partial equity method, what are the consolidation worksheet entries for year 1 and year 2?