1. Pawl Corporation acquired 90% of Snab Corporation on January 1, 2014 for $72,000 cash when Snab's stockholders' equity consisted of $30,000 of Capital Stock and $30,000 of Retained Earnings. The difference between the fair value of Pawl's assets and liabilities and the book value was allocated to a plant asset with a remaining 10-year straight-line life that was overvalued on the books by $5,000. The remainder was attributable to goodwill. The separate company statements for Pawl and Snab appear in the first two columns of the partially completed consolidation working papers. Required: Complete the consolidation working papers for Pawl and Snab for the year 2014.

Eliminations Debit Credit Consol- idated Pawl Snab INCOME STATEMENT Sales si 60.000 $22,000 Income of Snab 3,510 | 13,000) | 9,500) ( 2,000) (3,000) Cost of Sales Depreciation Expense Other Expenses Noncontrolling Interest Share 23,000) | 6,100) $ 25, 510 $ 3,400 u 25,000 $30,000 25,510 3. 400 Net income Retained Earnings 1/1 Add: Net income Legg: Dividends Retained Earnings 12/31 BALANCE SHEET Cash Accounts Receivable-net (15,000) 3,000) sl 35, 510 $30, 400 sl 26, 520 $ 7,000 22.000 10,000 Inventories 20,000 14.000 27,000 42,000 Land Equipment and Buildings-net Investment in Snab Corporation Goodwill 70,000 38.000 72.810 TOTAL ASSETS $ 238, 330 $111,000 LIAB. & EQUITY | Accounts payable $ 32,820 $50, 600 Capital Stock 170,000 30,000 Retained Earnings 35, 510 30,400 Noncontrolling Interest TOTAL LIAB. & EQUITY 238, 330 $111,000 $