Consolidation Worksheet Poz Inc., which is a calendar-year-reporting company, acquired 100%

of Soz Inc.’s outstanding common stock at a cost of $210,000 on 12/31/05. The analysis of Poz’s Investment account by the individual components of the major conceptual elements as of the ac¬

quisition date is as follows:

Book value element:

Common stock . $ 5,000 Additional paid-in capital . 95,000 Retained earnings . 160,000 Under- or (over)vatuation of net assets element:

Inventory . (20,000)

Land . 30,000 Building . (100,000)

Long-term debt . 40,000 Cost . $ 210,000 Each company’s financial statements for the year ended 12/31/05 immediately after the acquisition are as follows:

1. Prepare all consolidation entries as of 12/31/05. (First split the Investment account into the hook value element and the excess cost elements.)
2. Prepare a consolidation worksheet as of 12/31/05.