4110.2

Problem Company owns 90 percent of Solution Dairy's stock. The balance sheets of the two companies immediately after the Solution acquisition showed the following amounts Problem Company Solution Dairy Assets Cash & Receivables Inventory Land Buildings & Equipment (net) Investment in Solution Dairy Total Assets $139,000 218,000 78,000 398,000 268,200 $1,101,200 $78,000 98,000 51,000 236,000 $463,000 Liabilities & Stockholders Equity $65,000 254,200 396,000 386,000 $1,101,200 Current Payables Long-Term Liabilities Common Stock Retained Earnings Total Liabilities & Stockholders' Equity $34,000 151,000 63,000 215,000 $463,000 The fair value of the noncontrolling interest at the date of acquisition was determined to be $29,800. The full amount of the increase over book value is assigned to land held by Solution. At the date of acquisition, Solution owed Problem $9,000 plus $900 accrued interest. Solution had recorded the accrued interest, but Problem had not. Required: Prepare a consolidated balance sheet worksheet. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)