answer for optional accumulated depreciation consolidation entry is NOT 3,000 or 43,000

Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $190,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Sword Company Debit Credit $ 33,000 60,000 107,000 28,000 152,000 Item Cash Accounts Receivable Inventory Land Buildings and Equipment Investment in Sword Company Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Mortgages Payable Common Stock Retained Earnings Sales Income from Sword Company Prince Corporation Debit Credit $ 87,000 55.000 177,000 85,000 494,000 247,000 494,000 21,000 60,000 69,000 $ 141,000 65,000 196,000 289,000 328,000 692,000 78,000 $1,789,000 $1,789,000 257,000 11,000 60,000 21,000 $ 55.000 32,000 97,000 45,000 91,000 409,000 $729,000 $729,000 Additional Information 1. On January 1, 20X7, Sword reported net assets with a book value of $136,000. A total of $21,000 of the acquisition price is applied to goodwill, which was not impaired in 20x7. 2. Sword's depreciable assets had an estimated economic life of 11 years on the date of combination. The difference between fair value and book value of tangible assets is related entirely to buildings and equipment. Record the optional accumulated depreciation consolidation entry. Note: Enter debits before credits. Debit Credit Event 5 Accounts Accumulated depreciation Buildings and equipment Record entry Clear entry view consolidation entries PRINCE CORPORATION AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20X7 Consolidation Entries Prince Corp Sword Co DR C R Consolidated $ $ 409,000 (257,000) (11,000 (60,000) 692,000 (494,000) (21,000) (60,000) 78,000 195,000 1101,000 (751,000) (35,000) (120,000) 3,00013 ces 81,000 84,000 3,000 3,000 $ 41.000 $ $ $ 195,000 $ $ Income Statement Sales Less: COGS Less: Depreciation expense Less: Other expenses Income from Sword Co. Net Income Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance Balance Sheet Assets Cash Accounts receivable Inventory Land 91,000 84,000 328,000 195,000 (69,000) 454,000 91,000 81.000 (21,000) 151,000 3,000 21,000 24,000 328,000 195,000 (69,000) 454,000 $ $ 175,000 $ $ $ $ 33,000 60,000 27,000 87,000 55,000 177.000 85,000 120,000 88,000 284,000 113,000 107.000 28,000 $ 328,000 195.000 (69,000) 454,000 $ 91,000 81,000 (21,000) 151,000 91,000 84,000 3,000 21,000 24,000 328,000 195,000 (69,000) 454,000 $ 175.000 $ $ Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance Balance Sheet Assets Cash Accounts receivable Inventory Land Buildings & equipment Less: Accumulated depreciation Investment in Sword Co. Goodwill Total Assets Liabilities & Equity Accounts payable Mortgages payable Common stock Retained earnings Total Liabilities & Equity 87,000 55.000 177.000 85,000 494,000 (141,000) 247.000 33,000 60,000 107.000 28.000 152,000 (55,000) 120,000 88,000 284,000 113,000 679,000 (199,000) 3,000 247.000 1,004,000 01111121,000 || 325,000 S 11154,000 $ 277,000 21,000 1,106,000 $ $ 27,000 US $ 65,000 196.000 289,000 454.000 1,004,000 32,000 97.000 45,000 151,000 325,000 45,000 175,000 247,000 70,000 293,000 289,000 454,000 1,106,000 24,000 24,000 $ $ $ $ $