12/31 Retained Earmings Accounts Receivahle 19,500 210,000 172,500 Investment in Segal Company Ouher Assets $2182.500 $1.045230 s 105,000 Accounts Payable Other Current Liabiicies Capital Sock Retained Eannings 5 45,000 12,500 Total Liabilities and Equity The January 1, 2016, inventory of Paque Corporation includes $45,000 of profisa recorded by Segal Com- pany on 2015 sales. During 2016, Segal Company made intercompany sales of $300,00 with a markup of 20% of selling price. The ending inventory of Paque Corporation inclodes goods purchased in 2016 trom Segal Com- pany for $75,000 Required A. Prepare the consolidated statements workpaper for the year ended December 31,2016 B. Prepare a t-account calculation of controlling interest in consolidated net income for the year ended Decem- ber 31, 2016 OBLEM 6-8Upstream Eliminating Entries and Consolidated Net Income, Comprehensive Problem LOG On January 2, 2014, Patten Company purchased a 90% interest in Sterling Company for S 1.400,00. At that time Sterling Company had capital stock outstanding of $800,000 and retained earnings of $425,000. The difference between book value of equity acquired and the value implied by the purchase price was allocaied to the folow ing assets: 41.667 200,000 88,889 REMENSIVE Plast and Equipment (net) Goodwill The iaventory was sold in 2014. The plant and equipment had a remaining useful life of 10 years on During 2014 Sterling sold merchandise with a cost of $950,000 to Patten at a 20% marki p above cost At In 2014, Steling Company reported net income of January 2, 2014 December 31, 2014, Patten still had merchandise in its inventory that it purchased from Sterling for $576,00 $410000 and declaed o dividends. Required: A. Prepare in general journal form all entries necessary on the consolidated financial statements workpaper to eliminate the effects of the intercompany sales, to eliminate the investment account, and allocate the differ- ence between book value of equity acquired and the value implied by the purchase pricc. Assume that Patten Company reports net income of $2,000,000 from its independent operations. Calculate controlling interest in consolidated net income. B. C. Calculate noncontrolling interest in consolidated income Upstream and Downstream Workpaper, Comprehensive Problem, Cost Method Lo 6 On January 1, 2012, Perry Company purchased 80% of Selby Company for S990.000. At that time Selby had capital stock outstanding of $350,000 and retained earnings of $375,000. 16-9 The fair value of Selby Company's assets and liabilities is equal to their book value except for the following Fair Value Book $210,000 780,000 Inventory Plant and Equipment (10-year life) One-half of the inventory was sold in 2012, the remainder was sold in 2013 SIVE At the end of 2012, Perry Company had in its ending inventory $60,000 of merchandise it had purchased from % above cost. During 2013, Perry Selby Company during the year. Selby Company sold the merchandise at 25 Company sold merchandise to Selby Company for $310,000 at a markup of 20% of the selling price. At Decen- in that it numhased from Perry Company for $82,000 in its inventory 12/31 Retained Earmings Accounts Receivahle 19,500 210,000 172,500 Investment in Segal Company Ouher Assets $2182.500 $1.045230 s 105,000 Accounts Payable Other Current Liabiicies Capital Sock Retained Eannings 5 45,000 12,500 Total Liabilities and Equity The January 1, 2016, inventory of Paque Corporation includes $45,000 of profisa recorded by Segal Com- pany on 2015 sales. During 2016, Segal Company made intercompany sales of $300,00 with a markup of 20% of selling price. The ending inventory of Paque Corporation inclodes goods purchased in 2016 trom Segal Com- pany for $75,000 Required A. Prepare the consolidated statements workpaper for the year ended December 31,2016 B. Prepare a t-account calculation of controlling interest in consolidated net income for the year ended Decem- ber 31, 2016 OBLEM 6-8Upstream Eliminating Entries and Consolidated Net Income, Comprehensive Problem LOG On January 2, 2014, Patten Company purchased a 90% interest in Sterling Company for S 1.400,00. At that time Sterling Company had capital stock outstanding of $800,000 and retained earnings of $425,000. The difference between book value of equity acquired and the value implied by the purchase price was allocaied to the folow ing assets: 41.667 200,000 88,889 REMENSIVE Plast and Equipment (net) Goodwill The iaventory was sold in 2014. The plant and equipment had a remaining useful life of 10 years on During 2014 Sterling sold merchandise with a cost of $950,000 to Patten at a 20% marki p above cost At In 2014, Steling Company reported net income of January 2, 2014 December 31, 2014, Patten still had merchandise in its inventory that it purchased from Sterling for $576,00 $410000 and declaed o dividends. Required: A. Prepare in general journal form all entries necessary on the consolidated financial statements workpaper to eliminate the effects of the intercompany sales, to eliminate the investment account, and allocate the differ- ence between book value of equity acquired and the value implied by the purchase pricc. Assume that Patten Company reports net income of $2,000,000 from its independent operations. Calculate controlling interest in consolidated net income. B. C. Calculate noncontrolling interest in consolidated income Upstream and Downstream Workpaper, Comprehensive Problem, Cost Method Lo 6 On January 1, 2012, Perry Company purchased 80% of Selby Company for S990.000. At that time Selby had capital stock outstanding of $350,000 and retained earnings of $375,000. 16-9 The fair value of Selby Company's assets and liabilities is equal to their book value except for the following Fair Value Book $210,000 780,000 Inventory Plant and Equipment (10-year life) One-half of the inventory was sold in 2012, the remainder was sold in 2013 SIVE At the end of 2012, Perry Company had in its ending inventory $60,000 of merchandise it had purchased from % above cost. During 2013, Perry Selby Company during the year. Selby Company sold the merchandise at 25 Company sold merchandise to Selby Company for $310,000 at a markup of 20% of the selling price. At Decen- in that it numhased from Perry Company for $82,000 in its inventory