The December 31, 20X6, condensed balance sheets of Pine Corporation. and its 90 percent owned subsidiary, Slim Corporation, are presented in the accompanying worksheet.

Additional information is as follows:

- Pine's investment in Slim was purchased for \(\$ 1,200,000\) cash on January 1, 20X6, and is accounted for by the basic equity method.

- At January 1, 20X6, Slim's retained earnings amounted to \(\$ 600,000\), and its common stock amounted to \(\$ 200,000\).

- Slim declared a \(\$ 1,000\) cash dividend in December 20X6, payable in January 20X7.

- As of December 31, 20X6, Pine had not recorded any portion of Slim's 20X6 net income or dividend declaration.

- Slim borrowed \(\$ 100,000\) from Pine on June 30, 20X6, with the note maturing on June 30. 20X7, at 10 percent interest. Correct accruals have been recorded by both companies.

- During 20X6, Pine sold merchandise to Slim at an aggregate invoice price of \(\$ 300,000\), which included a profit of \(\$ 60,000\). At December 31, 20X6, Slim had not paid Pine for \(\$ 90,000\) of these purchases, and 5 percent of the total merchandise purchased from Pine still remained in Slim's inventory.

- Pine's excess cost over book value of its investment in Slim has appropriately been identified as goodwill. At December 31, 20X6, the management of Pine Corporation reviewed the amount attributed to goodwill and found no evidence of impairment.

\section*{Required}

Complete the accompanying workpaper for Pine Corporation and its subsidiary, Slim Corporation, at December 31, 20X6.

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Pine Corporation and Subsidiary Consolidated Balance Sheet Workpaper December 31, 20X6 Adjustments and Eliminations Pine Corporation Corporation Slim Debit Assets Cash 75,000 15.000 Accounts and Other Current Receivables 410.000 120.000 Merchandise Inventory 920.000 670,000 Plant and Equipment. Net 1.000.000 400,000 Investment in Slim 1.200.000 Totals 3,605.000 1,205.000 Liabilities and Stockholders' Equity: Accounts Payable and Other Current Liabilities 140,000 305,000 Common Stock ($10 par) 500.000 200.000 Retained Earnings 2.965.000 700,000 Totals 3.605.000 1.205.000 Credit Consolidated