DO IT! Rho Jean Ltd. acquired 5% of the 400,000 ordinary shares of Stillwater Ltd. at a total cost of NT$60 per share on May 18, 2017. On August 30, Stillwater declared and paid a NT$750,000 dividend. On December 31, Stillwater reported net income of NT$2,440,000 for the year. In June 1, 2018 the investment was sold for 1,260,000 cash. Prepare all necessary journal entries for 2017 and 2018 May 18 Aug. 30 June 1 Question 1: Prepare a consolidated balance sheet at acquisition and compute consolidated net income one year later (LO #5) (5 marks) On December 31, 2017, Pen Corporation purchased 80 percent of the stock of Sut Company at book value. The data reported on their separate balance sheets immediately after the acquisition follow. At December 31, 2017, Pen Corporation owes Sut $10,000 on accounts payable. (All amounts are in thousands.) Sut 90 286 $36 68 112 350 $566 Pen Assets Cash $64 Accounts receivable Inventories Investment in Sut 400 Equipment-net 760 $1,600 Liabilities and Stockholders' Equity Accounts payable $66 Common stock, $20 par 920 300 Retained earnings 600 200 $1,600 $80 $566 Required: 1. Prepare a consolidated balance sheet for Pen Corporation and Subsidiary at December 31, 2017 2. Compute consolidated net income for 2018 assuming that Pen Corporation reported separate income of $340,000 and Sut Company reported net income of $180,000. (Separate incomes does not include income from the investment in Sut.)