Consolidation Worksheet as of the Acquisition Date On 12/31/05, Pya Inc., a calendar-year re¬

porting company, acquired 80% of Sya Inc.’s outstanding common stock at a cost of $260,000. Selected information on Sya as of the acquisition date follows:

Book Current Remaining Value Value Life

$ 75,000 2 months 100,000 Indefinite 90,000 10 years 40,000=

4 years

:diately after the acquisiPya Sya

$ (500,000) 900,000 $ 500,000 (250,000)

(260,000) (202,000)

$ 140,000

$ 48,000

$ 110,000 $ 20,000 75,000 70,000 105,000 80,000 260,000 100,000 70,000 250,000 204,000

(150,000) (44,000)

$ 750,000 $ 400,000

$ 80,000 $ 60,000 20,000 150,000 300,000 100,000 350,000 90,000 S 750,000 $ 400,000

$ 80,000 $ 10,000 1. Prepare an analysis of the Investment account by the components of the major conceptual ele¬
ments as of 12/31/05. (First separate the Investment account into the book value element and the excess cost elements.)
2. Prepare the consolidation entries required as of 12/31/05.
3. Prepare a consolidation worksheet at 12/31/05.
4. What amount of income does Pya report to its stockholders for the year 2005?