does this first question look right, I don't feel very good about it.

Upstream and Downstream Sales Pace Company owns 85% of the outstanding common stock of Sand Company and all the outstanding common stock of Star Company. During 2012, the affiliates engaged in intercompany sales as follows: Sales of Merchandise Pace to Sand $ 40,000 Sand to Pace 60,000 Sand to Star 75,000 Star to Pace 50,000 $225,000 The following amounts of intercompany profits were included in the December 31, 2011, and December 31, 2012, inventories of the individual companies: Intercompany Profit in December 31, 2011, Inventory of Selling Company Pace Sand Star Total Pace Company $7,000 $ 7,000 Sand Company $ 5,000 $3,000 8,000 Star Company 8,000 8,000 Total $13,000 $7,000 $3,000 $23,000 Intercompany Profit in December 31, 2012, Inventory of Selling Company Pace Sand Star Total Pace Company $2,000 $ 2,000 Sand Company $ 6,000 $9,000 15,000 Star Company 4,000 4,000 Total $10,000 $2,000 $9,000 $21,000 Income from each company's independent operations (including sales to affiliates) for the year ended December 31, 2012, is presented here: Pace Company $200,000 Sand Company 150,000 Star Company 125,000 Required: A. Prepare in general journal form the workpaper entries necessary to eliminate intercompany sales and intercompany profit in the December 31, 2012, consolidated financial statements workpaper. 2011 Sales Purchases (Cost of Goods Sold) $ 12/31 Inventory (Income Statement) Inventory (Balance Sheet) $ Sales Purchases (Cost of Goods Sold) $ Beginning Retained Earnings Noncontrolling Interest 1/1 Inventory (Income Statement) $ $ 12/31 Inventory (Income Statement) Inventory (Balance Sheet) 436,000.00 $ $ 436,000.00 18,167.00 $ 18,166.67 2012 532,000.00 $ 532,000.00 16,350.30 1,816.70 $ 18,167.00 $ 22,166.67 22,167.00 B. Calculate the balance to be reported in the consolidated income statement for the following line items: Consolidated income Noncontrolling interest in consolidated income Controlling interest in consolidated income Reported subsidiary income $ 130,000.00 $ 18,167.00 $ (22,167.00) $ 126,000.00 10% $12,600 Add: Realized profit in beginning inventory Less: Unrealized profit in ending inventory Subsidiary income included in consolidated income Noncontrollong interest ownership percentage Noncontrolling interest in consolidated income $ 300,000.00 net income from independent operations Reported income Less: Unrealized profit on intercompany sales of 2012 Add: Profit on 2011 sales realized in transactions with third parties Subsidiary income realized in transactions with third parties share of subsidiary income $ 130,000.00 $ (22,167.00) $ 18,167.00 $ 126,000.00 $ 113,400.00 Controlling interest in consolidated net income $ 413,400.00 Workpaper Journal Entries and Income Statement Balances Powell Company owns 80% of the outstanding common stock of Sullivan Company. On June 30, 2011, Sullivan Company sold equipment to Powell Company for $500,000. The equipment cost Sullivan Company $780,000 and had accumulated depreciation of $400,000 on the date of the sale. The management of Powell Company estimated that the equipment had a remaining useful life of four years from June 30, 2011. In 2012, Powell Company reported $300,000 and Sullivan Company reported $200,000 in net income from their independent operations (including sales to affiliates but excluding dividend or equity income from subsidiary). Required: A. Prepare in general journal form the workpaper entries necessary because of the intercompany sale of equipment in: Powell Company Equipment Cash $ 500,000.00 $ 500,000.00 Sullivan Company Cash Accumulated Depreciation Equipment Gain on sale of Equp $ $ 500,000.00 400,000.00 $ 780,000.00 $ 120,000.00 (1) The consolidated financial statements workpaper for the year ended December 31, 2011. Accumulated Cost Depreciaition $ 780,000.00 $ 400,000.00 $ 500,000.00 $ 280,000.00 $ 400,000.00 2011 Original Cost Selling Price Difference Carrying Value Life $ 380,000.00 4yr $ 500,000.00 4yr $ (120,000.00) Equipment Gain on sale of Equip Accumulated Depreciation $ 280,000.00 $ 120,000.00 Accumulated Depreciation - Equip Depreciation Expense $ $ 400,000.00 15,000.00 $ (2) The consolidated financial statements workpaper for the year ended December 31, 2012. B. Calculate the balances to be reported in the consolidated income statement for the year ended December 31, 2012, for the following items: (1) Consolidated income. $ 96,000.00 (2) Noncontrolling interest in consolidated income. $ 24,000.00 (3) Controlling interest in consolidated income. $ 280,000.00 15,000.00 Depreciation Expense $ 95,000.00 $ 125,000.00 $ (30,000.00) Multiple Stock Purchases Sarko Company had 300,000 shares of $10 par value common stock outstanding at all times, and retained earnings balances as indicated here: Retained Earnings $ 260,000.00 1-Jan-10 $ 540,000.00 1-Jan-11 $ 630,000.00 1-Jan-12 $ 820,000.00 1-Jan-13 Pelzer Company acquired Sarko Company stock through open-market purchases as follows: Date % Acquired Shares Cost 30,000 $ 365,000.00 1/1/2010 shares (10%) $ 960,000.00 1/1/2011 75,000 shares (25%) 135,000 $ 1,860,000.00 1/1/2012 shares (45%) 240,000 shares (80%) $ 3,185,000.00 Sarko Company declared no dividends during this period. The fair values of Sarko Company's assets and liabilities were approximately equal to their book values throughout this period (2010 through 2012). Pelzer Company uses the cost method. Required: A. Prepare a schedule to compare investment cost with the book value of equity acquired. Purchase Price Less Book Value Commom Stock Retained Earnings Difference Between implied and BV $ 3,306,666.00 $ 826,667.00 $ 4,133,333.00 $ $ $ 2,400,000.00 $ 504,000.00 $ 402,666.00 $ 600,000.00 $ 3,000,000.00 126,000.00 $ 630,000.00 100,667.00 $ 503,333.00 B. Prepare elimination entries for the preparation of a consolidated statements workpaper on December 31, 2012. Investment in Sarko Company Pelzer Company 1/1 Retained Earnings Common StockSarko Company Sarko Company 1/1 Retained Earnings $ 59,500.00 $ 59,500.00 $ 3,000,000.00 $ Value Difference Between Implied and Book Investment in S Company Noncontrolling Interest in Equity Goodwill Difference Between Implied and Book Value 503,333 630,000.00 $ 503,333.00 $ 3,306,666.00 $ 826,677.00 $ 503,333.00 $ 503,333.00