CONSOLIDATIONS:

January 1, 2013 Acquisition Date Data:

Bamb-Bamb Incorporated acquired 80 percent of the outstanding common stock of Pebbles Corporation on January 1, 2013. Bamb-Bamb Incorporated paid a total of $910,000 in cash for these shares. The 20 percent noncontrolling interest shares had a total fair value of $215,000 both before and after Bamb-Bamb Incorporated's acquisition. The Book Value of Pebbles Corporation's Net Assets on January 1, 2013 was $550,000, which included the following:

Pebbles Corporations January 1, 2013 Owners Equity:

Common Stock ($150,000)

Additional Paid In Capital ($195,000)

Retained Earnings, January 1, 2013 ($205,000)

Bamb-Bamb Incorporated uses the Partial Equity method for internal record keeping to monitor the activities of Pebbles Corporation. At the acquisition date, the carrying amounts of Pebbles Corporation's assets and liabilities were generally equivalent to the fair value except for the following:

Assets/Liabilities Book Value Fair Value Reaming Useful Life

Equipment (Net) $80,000 $100,000 10 Years

Buildings (Net) $315,000 $510,000 20 Years

Land $120,000 $165,000 -

Loan Payable ($230,000) ($260,000) 8 Years

Fiscal Year 2014 Data:

On January 1, 2014 Bamb-Bamb Inc sold Pebbles Corp a Building for $150,000 cash. The Buildings net book value on January 1, 2014 was $90,000 and its originally purchased price was $115,000. The building is expected to be usable for another 15 years. Both Bamb-Bamb and Pebbles use the straight-line method for depreciating assets.

On January 1, 2014, Bamb-Bamb Incorporated acquired all of Pebbles' Corp outstanding bonds payable specifically to reduce the business combination's debt position. Pebbles Corporation makes cash interest payments of 4% each year; the market rate of return on the date the bonds were initially issued by Pebbles Corporation was 7%. Bond interest payments are made each December 31st. On January 1, 2014 the bonds had an outstanding book value of $231,391. Bamb-Bamb Incorporated paid $300,248 on January 1, 2014 for Pebbles Corp's outstanding bonds, at which time the market rate of return was 2%.