On December 31, 2010, Price Company purchased a controlling interest in Shipley Company. The balance sheet of Price Company and the consolidated balance sheet on December 31, 2010, were as follows:

On the date of acquisition, the stockholders’ equity section of Shipley Company’s balance  sheet was as follows:

Common stock …………………. $ 90,000

Other contributed capital ……..…… 90,000

Retained earnings ……………….… 56,000

Total ……………………………. $236,000

A. Prepare the investment elimination entry made to complete a consolidated balance sheet workpaper. Any difference between book value and the value implied by the purchase price relates to subsidiary land.

B. Prepare Shipley Company’s balance sheet as it appeared on December 31, 2010.

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Consolidated S 37,900 57,000 161.600 Price Compan S 22,000 35,000 127,000 212,000 190,000 120,000 S706,000 S42,000 100,000 Cash Accounts receivable Inventory Investment in Shipley Company Plant and equipment (net) 337,000 220,412 $813,912 S112,500 100,000 37,412 300,000 164.000 100,000 S813,912 an Total Accounts payable Note payable Non controlling interest in Shipley Company Common stock Other contributed capital Retained eamings Total 300.000 164.000 100,000 S706,000