ACC410 MT Exam Question 310 marks Panda Corporation acquired 80% of Soor Corporation on January 1, 2019 for $240,000 cash when Score stockholders' equity consisted of $100,000 of Common Stock and $30,000 of Retained Earnings. The difference between the price paid by Panda and the underlying equity acquired in Soor was allocated solely to a patent amortized over 10 years and the amortization expense was included in the subsidiary expenses Panda sold merchandise to Soor during the year in the amount of $30,000 $10,000 worth of inventory is still on hand at the end of the year with an unrealized profit of $4,000. The separate company statements for Panda and Soorappear in the first two columns of the partially completed consolidated workpaper. Required: Complete the parent financial statements and prepare the consolidated worlpaper for Panda and Soor for the year 2019. Show all the calculation. Panda Corporation and Subsidiary Consolidated Statements Workpaper, December 31, 2019 Solution: Consolidated Panda Soor Eliminations Statements Dr. Cr Corp. Corp. 200,000 150,000 Income Statement Sales Income from Soor Cost of Sales Other Expenses (92,000) (23,000) (47,000) (57.000 85.000 46,000 110,000 47,000 46,000 (20,000 73.000 (30,000) Net Income Retained Earnings Statement Retained Earnings 1/1 Add: Net Income Less Dividends Retained Earnings 12/31 Statement of Financial Position: Cash Accounts Receivable-net Inventonics Patent Land Equipment and Buildings-net Investment in S Corporation Total Assets Equities Accounts Payable Common Stock Retained Earnings 20,000 120,000 140.000 19,000 55,000 80.000 270.000 420.000 600,000 430,000 240,000 1.390,000 1,004,000 909,000 300,000 831,000 100,000 73,000 1.390,000 1.004.000 Total Equities