Advanced financial accounting 2020-2021 Case study 1 Pawl Corporation acquired 90% of Snab Corporation on January 1, 2014 for $72,000 cash when Snab's stockholders' equity consisted of $30,000 of Capital Stock and $30,000 of Retained Earnings. The difference between the fair value of Pawl's assets and liabilities and the book value was allocated to a plant asset with a remaining 10-year straight-line life that was overvalued on the books by $5,000. The remainder was attributable to goodwill. The separate company statements for Pawl and Snab appear in the first two columns of the partially completed consolidation working papers. Required: Record all the necessary worksheet entries. 2. Complete the consolidation income statement for Pawl and Snab at 31 of December 2014. Complete the consolidation retained earnings for Pawl and Snab at 31 of December 2014 Complete the consolidation balance sheet for Pawl and Snab at 31 of December 2014. Paw Eliminations Debit Credit Consol- idated Snab INCOME STATEMENT sales sl 60,000 $22.000 Income of Snab 3.510 13,000) 9.500) 2,000) | 3,000) Cost of Sales Depreciation Expense Other Expenses Noncontrolling Interest Share 123,000 6.100) sl 25,519 $ 3.400 $ 25,000 $30,000 25.510 3.400 Net income Retained Earnings 1/1 Add: Netancome Less: Dividends Retained Earnings 12/31 BALANCE SHEET Cash Accounts Receivable-net ( 15.000) 3.000) si 35, 510 $30.400 sl 26, 520 $ 7,000 22,000 10.000 Inventories 20,000 27,000 42.000 Land Equipment and Bulding.net Investment in Snab Corporation Goodwill 70.000 38.000 72.810 TOTAL ASSETS S238,330 5111,000 LIAB. & EQUITY Accounts payables 32,820 $50, 600 Capital Stock 170,000 30,000 Retained Earn 35, 510 30.400 Noncontrolling Interest TOTAL LIAB. & $ EQUITY 238,330 5111,000