Problem Company owns 90 percent of Solution Dairy’s stock. The balance sheets of the two companies immediately after the Solution acquisition showed the following amounts:

The fair value of the noncontrolling interest at the date of acquisition was determined to be $30,000. The full amount of the increase over book value is assigned to land held by Solution. At the date of acquisition, Solution owed Problem $8,000 plus $900 accrued interest. Solution had recorded the accrued interest, but Problem had not.

Required

Prepare and complete a consolidated balance sheet worksheet.

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Cash & Receivables Inventory Land Buildings & Equipment (net) Investment in Solution Dairy Total Assets Current Payables Long-Term Liabilities Common Stock Retained Earnings Total Liabilities & Stockholders' Equity Problem Solution Dairy Company $ 130,000 $ 70,000 210,000 90,000 70,000 40,000 390,000 220,000 270,000 $1,070,000 $ 80,000 200,000 400,000 390,000 $1,070,000 2` $ 420,000 $ 40,000 100,000 60,000 220,000 $ 420,000