2.(25 pts) Wayne Company purchased 100% of Schuster Company on January 1, 20X1 for $800,000 when the book value of Schuster was $750,000with the excess caused by a patent that was undervalued by $50,000.The patent had a five year life.

In 20x2Wayne sold inventory to Schuster still in the inventory of Schuster at year end with a profit of $3,000.

During 20x3, Wayne sold inventory to Schuster at a cost of $20,000 for $30,000.

At December 31, 20x3, Schuster still had $6,000 cost to Schuster of that inventory on hand in its inventory.

The income statements and balance sheets for the two companies for 20X3 are shown below:

Complete the consolidated worksheet.

Wayne Schuster Dr. Cr Consolidated Sales 300,000 100,000 Cost of Goods Sold 60,000 40,000 240,000 60,000 Expenses 40,000 10,000 Income from S Total Income 50,000 Begin. RE 800,000 730,000 Dividends 20,000 10,000 End. RE 770,000 Cash 100,000 100,000 Receivables 70,000 100,000 Inventory 50,000 50,000 Propety/Equipment 500,000 900,000 Accumulated Depo -100,000 -100,000 Patents 0 50,000 Investment in S 988,000 1,606,000 1,100,000 Liabilities 200,000 130,000 Capital Stock 200,000 Retained Earnings 770,000 1,608,000 1,100,000