eet as of December 31, 20X8. P5-37 205-4 Subsidiary with Other Comprehensive Income In Year of Acquisition Pirate Corporation acquired 60 percent ownership of Ship Company on January 1, 20x8, at undert lying book value. At that date, the fair value of the noncontrolling interest was equal to 40 percent of the book value of Ship Company, Accumulated depreciation on buildings and equipment were $75,000 on the acquisition date. Trial balance data at December 31, 20x8, for Pirate and Ship are as follows: Item Ship Company Debit Credit Pirate Corporation Debit Credit $ 27.000 65.000 40,000 500.000 $ 8.000 22,000 30,000 235,000 40.000 108,000 150,000 30,000 8,000 24,000 110,000 10,000 3.000 15,000 Cash Accounts Receivable Inventory Buildings & Equipment Investment in Row Company Securities Investment in Ship Company Cost of Goods Sold Depreciation Expense Interest Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Other Comprehensive Income from Ship Co (OC)-Unrealized Gain on Investments Unrealized Gain on Investments (OCH) Sales Income from Ship Company $140,000 63,000 100,000 200,000 208,000 6.000 $ 85,000 20,000 50,000 100.000 60.000 10.000 148,000 220,000 15.000 $952.000 $952,000 $473,000 5473,000 Additional Information Ship purchased stock of Row Company on January 1, 20x8, for $30,000 and classified the investment as available-for-sale securities. The value of Row's securities increased to $40,000 at December 31, 20X8. Required a. Give all consolidation entries needed to prepare a three-part consolidation worksheet as of December 31, 20X8. b. Prepare a three-part consolidation worksheet for 20X8 in good form. c. Prepare a consolidated balance sheet, income statement, and statement of comprehensive income for 20X8. 5-4 P5-38 Subsidiary with Other Comprehensive Income in Year Following Acquisition This problem is a continuation of P5-37. Pirate Corporation acquired 60 percent ownership of Ship Company on January 1, 20X8, at underlying book value. At that date, the fair value of the depreciation on buildings and equipment was $75,000 on the acquisition date. Trial balance data at noncontrolling interest was equal to 40 percent of the book value of Ship Company. Accumulated December 31, 20X9. for Pirate and Ship are as follows: Pirate Corporation Debit Credit Ship Company Debit Credit Item $ 18,000 45,000 40.000 585,000 $ 11,000 21.000 30,000 257,000 44,000 116,400 170,000 30.000 8.000 40.000 97,000 10,000 3.000 20,000 Cash Accounts Receivable Inventory Buildings & Equipment Investment in Row Company Securities Investment in Ship Company Cost of Goods Sold Depreciation Expense Interest Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Accumulated Other Comprehensive Income Other Comprehensive income from Ship Co (OCI-Unrealized Gain on Investments Unrealized Gain on Investments (OCI) Sales Income from Ship Company $ 170,000 75,000 100,000 200.000 231,000 6.000 2.400 $ 95,000 24,000 50,000 100,000 70.000 10.000 4.000 140,000 250,000 18.000 $1.052.400 $1.052,400 $493.000 $493.000 Additional Information Ship purchased stock of Row Company on January 1, 20X8, for $30,000 and classified the invest- ment as available-for-sale securities. The value of Row's securities increased to $40,000 and S44,000, respectively, at December 31, 20X8, and 20X9. Required a. Give all consolidation entries needed to prepare a three-part consolidation worksheet as of December 31, 20X9. b. Prepare a three-part consolidation worksheet for 2049 in
