34 On January 1, 2016 Prange Company acquired 80% of the common date Seaman had total owners' equity of $400,000. Any excess of cost over book value is attributable to patent, which is to be amortized over 20 years. stock of Seaman Company for $500,000. On this During 2016 and 2017, Prange has appropriately accounted for its investment in Seaman using the simple equity method. On January I, 2017, Prange held merchandise acquired from Seaman for $30,000. During 2017, Seaman sold merchandise to Prange for $100,000, of which $20,000 is held by Prange on December 31,2017. Seaman's gross profit on all sales is 40%. On December 31, 2017, Prange still owes Seaman $20,000 for merchandise acquired in December lete the Figure 1:2 worksheet for consolidated financial statements for the year ended December 31, 2017. Also hand in eliminatten entnes. Figure 4-2 Eliminations and Prange Credit Account Titles Inventory, December 31 Other Curent Assets Investment in Sub. Company 100,000 285,000 588,000 105,000 325,000 80,000 Land Buildings and Equipment Accumulated Depreciation Patent 140,000 340,000 315.000(130.000) (252,000 (130,000) Current Liabilities Bonds Payable Ocher Long-Term Liabilitics (100,000) (40,000) Common Stock-PCo. Other Paid in Capital-P Co. Retained Eamings-P Co (200,000) (100,000) (474,000) Common Stock-S Co. Other Paid in Capital-S Co. Retained Earnings-S Co. (150,000) (100,000) (200,000) Net Sales Cost of Goods Sold (600,000) 360,000 (380,000 228,000 Operating Expenses 140,000 62,000 Subsidiary Income Dividends Declared-P Co. Dividends Declared-S Co (72,000) 60,000 30,000 Consolidated Net Income NCI Controlling Interest Total NCI Ret. Eam. Contr. Int. 12-31