Chapter 9 Question The following balance sheets have been prepared on December 31, Year 13 for Brain Corp . and Sun Inc . Balance Sheets B rain S u 11 Cash $ 50,000 $ 35,000 Accounts Receivable 150,000 92,000 Inventory 90,000 74,000 Investment in Sun 120,000 Property , Plant and Equipment * 465,000 150,000 Accumulated Depreciation (280,000 ) (40,000 ) Total Assets $ 605,000 $ 312,000 * Includes land Current Liabilities $ 110,000 $ 50,000 Long -Term Debt 290,000 15,000 Common shares 95,000 85,000 Retained Earnings 110,000 152,000 Liabilities and Equity $ 605,000 $ 312,000 Additional Information Brain uses the cost method to account for its 60% interest in Sun , which it acquired on January 1, Year 10. On that date , Sun's retained earnings were $50,000 and common shares $35,000 . The acquisition differential was fully amortized by the end of Year 13. Brain sold Land to Sun during Year 12 and recorded a $10,000 1055 on the sale . At December 31 , Year 13 , Brain's inventory contained $50,000 of merchandise purchased from Sun of which $20,000 remained unpaid at year end . Sun charges a 30% profit margin . Both companies are subject to a tax rate of 25%. Required a. Prepare a Consolidated Balance Sheet for Brain on December 31, Year 13 assuming that Brain's investment in Sun is a control investment h. Prepare a Consolidated Balance Sheet for Brain on December 31, Year 13 assuming that Brain's Investment in Sun is a joint operations investment c. Prepare a Balance Sheet for Brain on December 31, Year 13 assuming that Brain's Investment in Sun is a joint venture investment