Father, Inc., buys 80 percent of the outstanding common stock of Sam Corporation on January 1, 2013, for $736,800 cash. At the acquisition date, Sams total fair value, including the noncontrolling interest, was assessed at $921,000 although Sams book value was only $644,000. Also, several individual items on Sams financial records had fair values that differed from their book values as follows:

		Book Value		Fair Value
Land	$	64,900	$	275,900
Buildings and equipment (10-year remaining life)		344,000		298,000
Copyright (20-year life)		134,000		226,000
Notes payable (due in 8 years)		(166,000)		(146,000)

For internal reporting purposes, Father, Inc., employs the equity method to account for this investment. The following account balances are for the year ending December 31, 2013, for both companies.

		Father			Sam
Revenues	$	(1,463,900	)	$	(731,300	)
Cost of goods sold		707,000			466,000
Depreciation expense		356,000			16,800
Amortization expense		0			6,700
Interest expense		46,300			8,800
Equity in income of Sam		(184,400	)		0
Net income	$	(539,000	)	$	(233,000	)
Retained earnings, 1/1/13	$	(1,282,500	)	$	(484,000	)
Net income (above)		(539,000	)		(233,000	)
Dividends paid		260,000			65,000
Retained earnings, 12/31/13	$	(1,561,500	)	$	(652,000	)
Current assets	$	911,300		$	697,600
Investment in Sam		869,200			0
Land		314,000			64,900
Buildings and equipment (net)		923,000			327,200
Copyright		0			127,300
Total assets	$	3,017,500		$	1,217,000
Accounts payable	$	(223,000	)	$	(239,000	)
Notes payable		(483,000	)		(166,000	)
Common stock		(300,000	)		(100,000	)
Additional paid-in capital		(450,000	)		(60,000	)
Retained earnings (above)		(1,561,500	)		(652,000	)
Total liabilities and equities	$	(3,017,500	)	$	(1,217,000	)

Note: Parentheses indicate a credit balance.

Using the acquisition method, prepare the worksheet to consolidate these two companies. (Leave no cells blank - be certain to enter "0" wherever required. Enter consolidation entries for noncontrolling interest in Sam Corporation in the order of (S) Elimination of subsidiarys stockholders equity and (A) Allocation of subsidiary total fair value in excess of book value. Enter consolidation entries for Investment in Sam in the order of (S) Elimination of subsidiarys stockholders equity (I) Elimination of intra-entity income and (A) Allocation of subsidiary total fair value in excess of book value. Input all amounts as positive values except for the credit balances which should be entered with the minus sign.)

FATHER INC., AND SAM CORPORATION Consolidated Worksheet For Year Ending December 31, 2013
						Consolidation Entries		Noncontrolling	Consolidated
Accounts	Father		Sam			Debit	Credit	Interest	Totals
Revenues	$	(1,463,900)	$	(731,300)
Cost of goods sold		707,000		466,000
Depreciation expense		356,000		16,800
Amortization expense		0		6,700
Interest expense		46,300		8,800
Equity in income of Sam		(184,400)		0
Separate company net income	$	(539,000)	$	(233,000)
Consolidated net income
Noncontrolling interest in Sam's income
Controlling interest in CNI
Retained earnings 1/1	$	(1,282,500)	$	(484,000)
Net income (above)		(539,000)		(233,000)
Dividends paid		260,000		65,000
Retained earnings 12/31	$	(1,561,500)	$	(652,000)
Current assets		911,300		697,600
Investment in Sam		869,200		0
Land	$	314,000	$	64,900
Buildings and equipment (net)		923,000		327,200
Copyright		0		127,300
Total assets	$	3,017,500	$	1,217,000
Accounts payable	$	(223,000)	$	(239,000)
Notes payable		(483,000)		(166,000)
NCI in Sam 1/1
NCI in Sam 12/31
Common stock		(300,000)		(100,000)
Additional paid-in capital		(450,000)		(60,000)
Retained earnings 12/31 (above)		(1,561,500)		(652,000)
Total liabilities and equities	$	(3,017,500)	$	(1,217,000)