13. 12a

required A:

required B: prepare a comprehensive consolidation worksheet as of december 31, 20X3

1. Salna Ranching uses average cost for cost of goods sold. Inventory Increased by A$20,000 durlng the year. Purchases were made unlformly during 203. The ending inventory was acquired at the average exchange rate for the year. 2. Plant and equipment were acquired as follows: 3. Plant and equipment are depreclated using the straight-Ine method and a 10-year IIfe with no residual value. 4. The payable to Palermo Is in Australlan dollars. Palermo's books show a recelvable from Salina Ranching of $6,480. 5. The 10 -year bonds were Issued on July 1,203, for A$106,000. The premlum is amortized on a straight-IIne basis. The interest is pald on April 1 and October 1. 6. The dividends were declared and pald on Aprll 1. 7. Exchange rates were as follows: Consolidation Financial Statement Worksheet December 31,203 Palermo Inc. purchased 80 percent of the outstanding stock of Salina Ranching Company, located In Australla, on January 1, 20X3. The purchase price in Australlan dollars (A\$) was A$200,000, and A$40,000 of the differentlal was allocated to plant and equipment, which is amortized over a 10-year perlod. The remainder of the differential was attributable to a patent. Palermo Inc. amortizes the patent over 10 years. Salina Ranching's trlal balance on December 31, 20X3, in Australlan dollars Is as follows: Assume that the Australlan dollar (A\$) Is the functional currency and that Palermo uses the fully adjusted equity method for accounting for Its Investment In Salina Ranching. A December 31, 20X3, trlal balance for Palermo Inc. follows. a. Prepare a set of consolidating entrles, In general journal form, for the entrles required to prepare a comprehensive consolidation worksheet (Including other comprehensive income) as of December 31, 20X3. (If no entry is requlred for a transactlon/event, select "No journal entry requlred" In the flrst account fleld.)