Asp Corporation holds 60 percent ownership of Parry Company, which it acquired on January 1, 20X1. Asp Corporation paid \(\$ 226,000\) for its ownership of Parry. At acquisition, Parry had retained earnings of \(\$ 50,000\) and \(\$ 200,000\) of stock outstanding. Book values approximated market values on some of Parry's assets and liabilities at the date of combination. However, the following amounts were not in full agreement:

Parry's depreciable assets should be expensed over 15 years. Management has reviewed the amount attributed to goodwill at the end of each year for impairment. At December 31, 20X2, management concluded a goodwill impairment loss of \(\$ 12,000\) had occurred during \(20 \times 2\). No other impairment of goodwill has taken place.
The balance sheets of the companies on December 31, 20X4, included the following amounts:

\section*{Required}
Give the amounts to be reported in the consolidated balance sheet as of December \(31,20 \times 4\), for the following accounts:

a. Inventory.

b. Land.

c. Buildings and Equipment.

d. Accumulated Depreciation.

e. Investment in Parry Company.

f. Goodwill.
g. Common Stock.
h. Retained Earnings.

Transcribed Image Text:

Inventory (FIFO basis) Land Buildings and Equipment Book Value $ 40,000 40.000 150.000 Fair Value $ 50,000 60,000 200.000