On June 30, 2014, Plaster, Inc., paid $916,000 for 80 percent of Stucco Companys outstanding stock. Plaster

On June 30, 2014, Plaster, Inc., paid $916,000 for 80 percent of Stucco Company’s outstanding stock. Plaster assessed the acquisition-date fair value of the 20 percent noncontrolling interest at $229,000. At acquisition date, Stucco reported the following book values for its assets and liabilities:

Cash . . . . . . . . . . . . . . . . . . . . . . $ 60,000

Accounts receivable. . . . . . . . . . . 127,000

Inventory . . . . . . . . . . . . . . . . . . . 203,000

Land . . . . . . . . . . . . . . . . . . . . . . 65,000

Buildings . . . . . . . . . . . . . . . . . . . 175,000

Equipment. . . . . . . . . . . . . . . . . . 300,000

Accounts payable. . . . . . . . . . . . . (35,000)

On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco’s assets as follows:

Equipment (3-year remaining life) . . . . . . . $ 75,000

Database (10-year remaining life). . . . . . . . 175,000

At the end of 2014, the following comparative (2013 and 2014) balance sheets and consolidated income statement were available:

Additional Information for 2014
• On December 1, Stucco paid a $40,000 dividend. During the year, Plaster paid $100,000 in dividends.
• During the year, Plaster issued $800,000 in long-term debt at par.
• Plaster reported no asset purchases or dispositions other than the acquisition of Stucco.
Prepare a 2014 consolidated statement of cash flows for Plaster and Stucco. Use the indirect method of reporting cash flows from operatingactivities.

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Plaster, Inc. December 31, 2013 Consolidated December 31, 2014 Cash Accounts receivable (net) Inventory Land Buildings (net) Equipment (net) Database $ 43,000 362,000 415,000 300,000 245,000 1,800,000 242,850 485,400 720,000 365,000 370,000 2,037,500 166,250 $4,387,000 Total assets $3,165,000 Accounts payable Long-term liabilities Common stock Noncontrolling interest Retained earnings $ 80,000 400,000 1,800,000 $ 107,000 1,200,000 1,800,000 255,500 1,024,500 $4.387.000 885,000 $3,165.000 Total liabilities and equities PLASTER, INC, AND SUBSIDIARY STUCCO COMPANY Consolidated Income Statement For the Year Ended December 31, 2014 Revenues Cost of goods sold Depreciation Database amortization Interest and other expenses $1,217,500 $737,500 187,500 8,750 9,750 943,500 S 274,000 Consolidated net income