5) On December 31, 2016, Paladium international purchased 100% of the outstanding common stock of Sennex Chemical inc. Paladium paid $200,000 for the shares and determined that the fair value of all recorded Sennex assets and Nabilities books that had approximated their book values, with the exception of a customer list not recorded on their a fair value of $10,000 and an expected remaining useful life of 5 years. At the time of purchase, holders' equity consisting of common stock of $20,000 and retained earnings of $80,000. Any value was attributed to goodwill. The separate financial statements at December 31, 2017 remaining excess fair appear in the first two columns of the consolidation workpapers shown below. Required Complete the consolidation workpapers for Paladium and Sennex for the year 2017 Consolidated Balance Sheet Paladium Sennex Debits Credits INCOME STATEMENT Sales income of Sennex Cost of Sales Other Expenses Net Income (48,000) (331,900) (13,000) 148,000 72,000 8,000 $ (124,900) (15,000) $ (846,000) (80,000) Retained Earnings 1/1 Add: Net Income (124,900)(15,000 Less: Dividends 9,000 4,000 Retained Earnings 12/31 $(961,900) (91,000) BALANCE SHEET Cash Accounts Receivable-net 227,000 Inventories Land Equipment and Buildings-net $ 135,000 64,000 160,000 86,000 40,000 316,000 80,000 410,200 209,000 230,000 Investment in Sennex Customer List Total Assets $1,377,200 580,000 LIAB. & EQUITY 305,300 S 1469.000 Common Stock (110,000) (20,000) (91,000) TOTAL LIAB. AND $(1,377,200) (580,000) Retained Earnings-12/31 (961,900 5) On December 31, 2016, Paladium international purchased 100% of the outstanding common stock of Sennex Chemical inc. Paladium paid $200,000 for the shares and determined that the fair value of all recorded Sennex assets and Nabilities books that had approximated their book values, with the exception of a customer list not recorded on their a fair value of $10,000 and an expected remaining useful life of 5 years. At the time of purchase, holders' equity consisting of common stock of $20,000 and retained earnings of $80,000. Any value was attributed to goodwill. The separate financial statements at December 31, 2017 remaining excess fair appear in the first two columns of the consolidation workpapers shown below. Required Complete the consolidation workpapers for Paladium and Sennex for the year 2017 Consolidated Balance Sheet Paladium Sennex Debits Credits INCOME STATEMENT Sales income of Sennex Cost of Sales Other Expenses Net Income (48,000) (331,900) (13,000) 148,000 72,000 8,000 $ (124,900) (15,000) $ (846,000) (80,000) Retained Earnings 1/1 Add: Net Income (124,900)(15,000 Less: Dividends 9,000 4,000 Retained Earnings 12/31 $(961,900) (91,000) BALANCE SHEET Cash Accounts Receivable-net 227,000 Inventories Land Equipment and Buildings-net $ 135,000 64,000 160,000 86,000 40,000 316,000 80,000 410,200 209,000 230,000 Investment in Sennex Customer List Total Assets $1,377,200 580,000 LIAB. & EQUITY 305,300 S 1469.000 Common Stock (110,000) (20,000) (91,000) TOTAL LIAB. AND $(1,377,200) (580,000) Retained Earnings-12/31 (961,900