Pil Corporation paid $170,000 for an 80 percent interest in Stu Corporation on December 31, 2011, when

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Pil Corporation paid $170,000 for an 80 percent interest in Stu Corporation on December 31, 2011, when Stu's stockholders' equity consisted of $100,000 capital stock and $50,000 retained earnings. A summary of the changes in Pil's Investment in Stu account from December 31, 2011, to December 31, 2015, follows (in thousands):

Pil Corporation paid $170,000 for an 80 percent interest in

Financial statements for Pil and Stu at and for the year ended December 31, 2015, are summarized as follows (in thousands):

Pil Corporation paid $170,000 for an 80 percent interest in

ADDITIONAL INFORMATION
1. The accounts payable of Stu at December 31, 2015, include $5,000 owed to Pil.
2. Pil advanced $25,000 to Stu during 2013. This advance is still outstanding.
3. Half of Stu's 2015 dividends will be paid in January 2016.
REQUIRED
Prepare workpapers to consolidate the balance sheets only of Pil and Stu Corporations at December 31, 2015.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Advanced Accounting

ISBN: 978-0133451863

12th edition

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

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