case 2

Step 1

Fair Value Allocation			1/1/20
Consideration Transferred
Common Stock
Retained Earnings
Tradename
Intra-entity Inventory Transfers (upstream)
	Sales	Inventory	Intra.Profit
2020
2021
Investment Account
Cost
2020 Equity Earnings
Dividends
12/31/2020 Balance
2021 Equity Earnings
Dividends
12/31/2021 Balance
Equity in Nolan Company Earnings
2020 Reported Net Income
EI Profit
Amortization
Equity Earnings
2021 Reported Net Income
BI Profit
EI Profit
Amortization
Equity Earnings

Step 2

Code	Account Title	Debit	Credit