9) Parrot Corporation acquired 90% of Swallow Co. on January 1, 2014 for $27,000 cash when Swallow's stockholders' equity consisted of $10,000 of Capital Stock and $5,000 of Retained Earnings. The difference between the fair value and book value of Swallow's net assets was allocated solely to a patent amortized over 5 years. The separate company statements for Parrot and Swallow appear in the first two columns of the partially completed consolidation working papers.

Required: Complete the consolidation working papers for Parrot and Swallow for the year 2014.

Parrot Swallow Eliminations Debit Credit Consol- idated INCOME STATEMENT Sales 20,000 $15,000 Income of Swallow 2,970 0 ( 9.2001 4.7001 2,300) 4,000) Cost of Sales Other Expenses Noncontrolling Interest Share $ 11,470 $ 6,300 $ 11,000 $ 5,000 11, 470 6, 300 Net income Retained Earnings 1/1 Add: Net income Less: Dividends Retained Earnings 12/31 BALANCE SHEET Cash Accounts Receivable-net 3,000 2,000) $ 19,470 $ 9,300 $ 2,000 $ 1,900 12.000 5.500 Inventories 14,000 8.000 Patent 27.000 42,000 60,000 43,000 28, 170 $ 143,170 $100,400 $ 93,700 $81,100 Land Equipment and Buildings-net Investment in Swallow Co. TOTAL ASSETS LIAB. & EQUITY Accounts payable Capital Stock Retained Earnings 1/1 Noncontrol. Interest 12/31 Noncontrol. Interest 30,000 10.000 19,470 9,300 TOTAL LIAB. 6 EQUITY S 143, 170 $100,400 Parrot Swallow Eliminations Debit Credit Consol- idated INCOME STATEMENT Sales 20,000 $15,000 Income of Swallow 2,970 0 ( 9.2001 4.7001 2,300) 4,000) Cost of Sales Other Expenses Noncontrolling Interest Share $ 11,470 $ 6,300 $ 11,000 $ 5,000 11, 470 6, 300 Net income Retained Earnings 1/1 Add: Net income Less: Dividends Retained Earnings 12/31 BALANCE SHEET Cash Accounts Receivable-net 3,000 2,000) $ 19,470 $ 9,300 $ 2,000 $ 1,900 12.000 5.500 Inventories 14,000 8.000 Patent 27.000 42,000 60,000 43,000 28, 170 $ 143,170 $100,400 $ 93,700 $81,100 Land Equipment and Buildings-net Investment in Swallow Co. TOTAL ASSETS LIAB. & EQUITY Accounts payable Capital Stock Retained Earnings 1/1 Noncontrol. Interest 12/31 Noncontrol. Interest 30,000 10.000 19,470 9,300 TOTAL LIAB. 6 EQUITY S 143, 170 $100,400