3 years ago on January 1, 2011, Daisy Company acquired 80 percent of Rose Company for $594,000 in cash. Roses net book value on that date was $610,000 and the fair value of the non-controlling interest was $148,500. Rose possessed a trademark (10-year remaining life) that although unrecorded on Roses accounting records, had a fair value of $75,000. There were no other unrecorded assets or liabilities and the book value of the remaining assets and liabilities approximated fair value.

Goodwill :57500

CI of Goodwill:46,000

NCI of Goodwill: 11500

Rose had net income of $120,000 in 2013.

Daisy acquired Rose so that Rose could provide Daisy with vital component parts for its production of Captain Kirk lounge chairs.

At the beginning of 2013, Daisy had inventory on hand from Rose that it paid Rose $30,000 for. Roses cost to make that inventory was $20,000.

During 2013, Daisy purchased $160,000 of inventory from Rose that cost Rose $120,000 to make. Of the inventory purchased in 2013, Daisy had $68,000 of it left unused at the end of the year. The cost to Rose to make this unused inventory was $51,000.

On January 1, 2012, Daisy sold Rose several pieces of equipment that had a 10 year remaining useful life. All equipment in the controlled group is considered to have no salvage value and is depreciated on a straight line basis. The equipment originally cost Daisy $100,000 and had accumulated depreciation of $56,000 at the time of the transfer. The transfer price was $80,000.

On January 1, 2013 Daisy sold land on credit to Rose for $50,000. The original cost of the land was $22,000. At December 31, 2013, Rose had yet to pay for the land.

Using the information you have developed thus far and this page space for computations, complete the consolidated worksheet on the following page for the year ended December 31, 2013. Remember, 3 years have passed since the initial acquisition. 2011, 2012 and the current year 2013. This is an important point to consider for the preparation of the R entry. Goodwill has NOT been impaired in any year.