Canan Corporation paid $12,400 for a 70% interest in Kodak Corporation on January 1, 2020, when Kodak's stockholders' equity consisted of $7,000 Capital Stock, APIC of $3,000, and $3,000 of Retained Earnings. The excess cost over book value was attributable to the trademark, which has not been impaired since the acquisition date. Additional information: 1. Canan sells merchandise to Kodak at 120% of Canan's cost. In 2020, Canan's sales to Kodak were $4,800, of which half of the merchandise remained in Kodak's inventory on December 31, 2020. (The 2020 ending inventory was sold in 2021.) In 2021, Canan's sales to Kodak were $6,000 of which 60% remained in Kodak's inventory on December 31, 2021. At year-end 2021, Kodak owed Canan $3,000 for the inventory purchased during 2021. 2. Canan Corporation sold equipment with a book value of $2,000 and a remaining useful life of four years and no salvage value to Kodak Corporation on January 1, 2021, for $2,800. Straight-line depreciation is used. 3. In 2021, Kodak sold to Canan land for $50,000 that had a book value of $20,000. Canan still owns the land at 12/31/21. 4. Separate company financial statements for Canan Corporation and Kodak on December 31, 2021, are summarized in the first two columns of the consolidation working papers. See Spreadsheet Tab. 5. Prepare the balance sheet

INCOME STATEMENT	P	S	ELIMINATIONS		CONS.TOT.
			DR	Cr
Sales	60,000	14,000			74,000
Equity in sub earnings	3,400				3,400
gain on sale of equip	800				800
Gain on sale of land		30,000			30,000
Total revenues	64,200	44,000			108,200
Cost of goods sold	26,000	4,400			30,400
Expenses	28,000	3,600			31,600
Total expenses	54,000	8,000			62,000
Total Net income	10,200	36,000			46,200
Less net income to NCI					0
Net income to controlling interest	10,200	36,000			46,200
RETAINED EARNINGS
STATEMENT
Retained Earnings 1/1	4,633	5,000			9,633
Net income	10,200	36,000			46,200
Dividends declared	7,000	2,000			9,000
Retained Earnings 12/31	7,833	39,000			46,833
BALANCE SHEET
cash	5,500	33,000			38,500
accts rec	7,000	4,000			11,000
Dividends rec					0
Inventory	9,733	4,500			14,233
Other current assets					0
Land	50,000	3,500			53,500
Buildings, net					0
Equipment, net	24,000	9,000			33,000
Investment in S	15,600				15,600
trademark					0
					0
					0
Total assets	111,833	54,000			165,833
Accounts payable	54,000	5,000			59,000
Dividends payable					0
Other liabilities					0
Common stock	50,000	7,000			57,000
Additional paid-in capital		3,000			3,000
Retained earnings	7,833	39,000			46,833
noncontrolling interest					0
Total liabilities and equity	111,833	54,000	0	0	165,833
	TRUE	TRUE			TRUE