Chapter 3 CORDED STATESQUENT TO ACON 185 Problem 3-4 (LO 3) Cost method, consolidated statements. The trial balances of Chango Company and its subsidiary, Lhasa Inc., are as follows on December 31, 20X3: Lhasa te Chango 530,000 1,805,000 (405,000 460,000 1900,000) 1220,000 130,000 440,000 170,000) t (225,000) Current Assets Depreciable Fixed Assets Accumulated Depreciation Investment in Lhasa Inc. Liabilities Common Stock ($1 por) Common Stock ($5 par) Paid In Capital in Excess of Par Retained Earnings, January 1, 20X3. Revenues Expenses Dividends Declared Total.. (1,040,000 1230,000) (460,000) 450,000 10,000 0 150,000 (15,000) 1170,000) (210,000) 170,000 0 On January 1, 20X1, Chango Company exchanged 20,000 shares of its common stock, with a fair value of $23 per share, for all the outstanding stock of Lhasa Inc. Any excess of cost over book value was attributed to goodwill. The stockholders' equity of Lhasa Inc. on the pur- chase date was as follows: Common stock ($5 parl Paid.in capital in excess of par Retained earnings Total equity $ 50,000 15,000 135,000 $200,000 ***Required 1. Prepare a determination and distribution of excess schedule for the investment. 2. Prepare the 20x3 consolidated statements, including the income statement, retained earn- ings statement, and balance sheet. (A worksheet is not required.) Bell Corporation pur