Help solve this accounting set.......................................

Student Name: Class: Problem 05-32 a. How was the balance in the Equity Earnings of Sander account determined? 2011 income reported by Sander Excess patent fair value amortization Deferred gross profit for 12/31/11 intra-entity inventory Recognized gross profit for 1/11/11 intra-entity inventory Sander's income adjusted To controlling interest To noncontrolling interest PLYMOUTH COMPANY AND SUBSIDIARY Consolidation Worksheet December 31, 2011 Accounts Plymouth (1,740,000) 820,000 Sander (950,000) 500,000 104,000 220,000 20,000 (124,000) (700,000) (2,800,000) (345,000) Net Income Dividends paid Retained earnings, 12/31 (700,000) 200,000 (3,300,000) (230,000) 25,000 (550,000) Cash Accounts receivable Inventory Investment in Sander 535,000 575,000 990,000 1,420,000 115,000 215,000 800,000 Buildings and equipment Patents Goodwill Total assets 1,025,000 950,000 863,000 107,000 5,495,000 2,100,000 (450,000) (545,000) (200,000) (450,000) (900,000) (300,000) (3,300,000) (5,495,000) (800,000) (100,000) (550,000) (2,100,000) Noncontrolling Interest 85,000 120,000 15,000 (230,000) Retained earnings, 1/1 Adjustments and Eliminations Debit Credit Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity earnings - Sander Separate company income Consolidated income to noncontrolling interest Consolidated income to controlling interest Accounts payable Notes payable Noncontrolling interest in Sander 1/1 Noncontrolling interest in Sander 12/31 Common stock Additional paid-in capital Retained earnings 12/31 Total liabilities and equity Parentheses indicate a credit balance. - - Consolidated Totals Given Data P05-32: Sander Company outstanding stock purchased by Plymouth Corp on 1/1/11 Cash paid for Sander stock Sander's book value at time of purchase Sander's business fair value at time of purchase Undervaluation of Sander's patent account at time of purchase Remaining life of patents (years) 80% $ 1,200,000 $ 925,000 $ 1,500,000 $ 350,000 5 Intercompany inventory sales for past three years: Year 2011 2012 2013 Intra-Entity Sales $ 125,000 220,000 300,000 Intra-Entity Ending Inv. Transfer Price $ 80,000 125,000 160,000 Gross Profit Rate on Intra-Entity Inventory Transfers 25% 28% 25% Separate financial statements as of December 31, 2013 Revenues Cost of goods sold Operating expenses Amortization expense Interest expense Equity in earnings of Sander Net income Plymouth Sander 12/31/2013 12/31/2013 $ (1,740,000) $ (950,000) 820,000 500,000 104,000 85,000 220,000 120,000 20,000 15,000 (124,000) $ (700,000) $ (230,000) Retained earnings, 1/1/11 Net income Dividends paid Retained earnings, 12/31/11 $ (2,800,000) $ (700,000) 200,000 $ (3,300,000) $ Cash Accounts receivable Inventories Investment in Sander Buildings and equipment Patents Total assets $ Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings 12/31/11 Total liabilities and stockholders' equity $ 535,000 575,000 990,000 1,420,000 1,025,000 950,000 $ 5,495,000 (345,000) (230,000) 25,000 (550,000) $ 115,000 215,000 800,000 863,000 107,000 $ 2,100,000 (450,000) $ (200,000) (545,000) (450,000) (900,000) (800,000) (300,000) (100,000) (3,300,000) (550,000) $ (5,495,000) $ (2,100,000)