P corporation acquired 80 of s corporation on january 1

Question

Assignment

P Corporation acquired 80% of S Corporation on January 1, 2014 for $240,000 cash when S's stockholders' equity consisted of $100,000 of Common Stock and $30,000 of Retained Earnings. The difference between the price paid by P and the underlying equity acquired in S was allocated solely to a patent amortized over 10 years.

P sold merchandise to S during the year in the amount of $30,000. $10,000 worth of inventory is still on hand at the end of the year with an unrealized profit of $4,000. The separate company statements for P and S appear in the first two columns of the partially completed consolidated workpaper.

Required:

Complete the consolidated workpaper for P and S for the year 2014.

P Corporation and Subsidiary
Consolidated Statements Workpaper
	P	S	Eliminations		Noncontrolling Interest	Consolidated Balances
	Corp.	Corp.	Dr.	Cr.
Income Statement
Sales	200,000	150,000
Dividend Income	16,000
Cost of Sales	-92,000	-47,000
Other Expenses	-23,000	-40,000
Noncontrolling Interest in Income
Net Income	101,000	63,000
Retained Earnings Statement
Retained Earnings 1/1	110,000	30,000
Add:  Net Income	101,000	63,000
Less:  Dividends	-30,000	-20,000
Retained Earnings 12/31	181,000	73,000
Balance Sheet
Cash	20,000	19,000
Accounts Receivable-net	120,000	55,000
Inventories	140,000	80,000
Patent
Land	270,000	420,000
Equipment and Buildings-net	600,000	430,000
Investment in S Corporation	240,000
Total Assets	1,390,000	1,004,000
Equities
Accounts Payable	909,000	831,000
Common Stock	300,000	100,000
Retained Earnings	181,000	73,000
1/1 Noncontrolling Interest in Net Assets
12/31 Noncontrolling Interest in Net Assets
Total Equities	1,390,000	1,004,000