1.On January 1, 2018, P acquired 80% of the outstanding voting common stock of S. for $364,000. There is no active market for S's stock. Of this payment, $28,000 was allocated to equipment (with a five-year life) that had been undervalued on S's books by $35,000. Any remaining excess was attributable to goodwill, which has not been impaired.

As of December 31, 2018, before preparing the consolidated worksheet, the financial statements appeared as follows:

P.

S.

Revenues

$420,000

$280,000

Cost of goods sold

(196,000)

(112,000)

Operating expenses

(28,000)

(14,000)

Net income

$196,000

$154,000

Retained earnings, 1/1/18

$420,000

$210,000

Net income (above)

196,000

154,000

Dividends paid

0

0

Retained earnings, 12/31/18

$616,000

$364,000

Cash and receivables

$294,000

$126,000

Inventory

210,000

154,000

Investment in S

364,000

0

Equipment (net)

616,000

420,000

Total assets

$1,484,000

$700,000

Liabilities

$588,000

$196,000

Common stock

280,000

140,000

Retained earnings, 12/31/18 (above)

616,000

364,000

Total liabilities and stockholders' equity

$1,484,000

$700,000

During 2018, P bought inventory for $112,000 and sold it to S for $150,000. Only half of the inventory purchase price had been remitted to P by S at year-end. As of December 31, 2018, 60% of these goods remained in the company's possession.

1.What is the consolidation entry for eliminating the effects of 2018 intra-entity inventory transfer?

2.What is the total of consolidated revenues?

3.What is the total of consolidated operating expenses?

4.What is the consolidated total of cost of goods sold?

5.What is the consolidated total of noncontrolling interest appearing in the balance sheet?

6.What would have been the balance of Investment in S in the balance sheet had P used fully adjusted equity method of accounting for its Investment in S?

7.What is the consolidated total for equipment (net) at December 31, 2018?

8.What is the consolidated total for inventory at December 31, 2018?

9.What is the consolidated total of Cash and Receivable?

What is the consolidated total of Liabilities?