Paque Corporation owns 90% of the common stock of Segal Company. The stock was purchased for $810,000 on January 1, 2017, when Segal Company?s retained earnings were $150,000. Financial data for 2021 are presented here:

The January 1, 2021, inventory of Paque Corporation includes $45,000 of profit recorded by Segal Company on 2020 sales. During 2021, Segal Company made intercompany sales of $300,000 with a markup of 20% of selling price. The ending inventory of Paque Corporation includes goods purchased in 2021 from Segal Company for $75,000.

Required:

A. Prepare the consolidated statements workpaper for the year ended December 31, 2021.

B. Prepare a t-account calculation of controlling interest in consolidated net income for the year ended December 31, 2021.

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Segal Company Paque Corporation $ 795,000 Sales $1,650,000 Dividend Income 54,000 Total Revenue 1,704,000 795,000 Cost of Goods Sold: Beginning Inventory 225,000 165,000 Purchases 1,275,000 525,000 Cost of Goods Available 690,000 1,500,000 Less: Ending Inventory 172,500 210,000 517,500 Cost of Goods Sold 1,290,000 Other Expenses 310,500 206,250 723,750 $ 71,250 Total Cost and Expense 1,600,500 $ 103,500 Net Income 1/1 Retained Earnings 811,500 180,000 Net Income 103,500 71,250 Dividends Declared (150,000) (60,000) $ 765,000 $ 191,250 12/31 Retained Earnings $ 75,000 $ 93,000 Cash Accounts Receivable 319,500 168,750 172,500 Inventory Investment in Segal Company 210,000 810,000 Other Assets 750,000 630,000 $2,182,500 $1,046,250 Total Assets $ 105,000 $ 45,000 Accounts Payable Other Current Liabilities 112,500 60,000 Capital Stock Retained Earnings 1,200,000 750,000 765,000 191,250 Total Liabilities and Equity $1,046,250 $2,182,500