1. (20 points) Scott Corporation purchased 100% of Nina Inc. for $128,000 on January 1, 20X7. Scott paid a premium of $100,000 in excess

of Book Value of Nina. The premium should be assigned to Goodwill except for $20,000 assigned to equipment with a 10-year remaining life.

Below are the Adjusted Trial Balances of the Two Companies:
			Elimination Entries		Combined Worksheet

Cash	$ 19,500	$ 21,000
Accounts Receivable	70,000	12,000
Inventory	90,000	25,000
Land	30,000	15,000
B&E (net)	205,000	110,000
Investment in Nina	134,000
Accounts payable	(45,000)	(16,000)
Wages Payable	(17,000)	(9,000)
Notes Payable	(150,000)	(50,000)
Common stock	(200,000)	(60,000)
Retained earnings	(102,000)	(40,000)
Sales	(260,000)	(180,000)
CofGS	125,000	110,000
Wage expense	42,000	27,000
Depreciation expense	25,000	10,000
Interest expense	12,000	4,000
Other Explenses	13,500	5,000
Income from subsidiary (Nina)	(22,000)
Divdends Declared	30,000	16,000

Prepare all elimination entries and complete worksheet.