I am including the answers but just need to see how they are worked out. Stroud Corporation is an 80%-owned subsidiary of Pennie, Inc., acquired by Pennie several years ago. On January 1, 20X2, Pennie sold land with a book value of $60,000 to Stroud for $90,000. Stroud resold the land to an unrelated party for $100,000 on September 26, 20X3. The land will be included in the December 31, 20X2 consolidated balance sheet of Pennie, Inc. and Subsidiary at _______. The answer is $60,000. Sun Company is a 100%-owned subsidiary of Peter Company. On January 1, 20X1, Sun Company has $500,000 of 8% face rate bonds outstanding, with an unamortized discount of $5,000 which is being amortized over a 5 year remaining life to maturity. On that date, Peter Company purchased the bonds for $497,000. The adjustment to the consolidated income of the two companies needed in the consolidation process for 20X2 (the following year) is __________. The answer is $400. Powell Company owns an 80% interest in Sauter, Inc. On January 1, 20X1, Sauter issued $400,000 of 10-year, 12% bonds at a premium of $25,000. On December 31, 20X5, 5 years after original issuance, Powell purchased all of the outstanding bonds for $390,000. Both firms use the straight-line method of amortization. Bond interest expense included in the 20X5 subsidiary income distribution schedule is __________. The answer is $0. Please explain why. Assume investments in the stock of firms not included in the consolidated group result in the nonconsolidated firm reporting income of $200,000 and the firm paid dividends of $50,000. If the consolidated firm paid $10,000 more than book value for its 40% interest and regards the excess as attributable to goodwill, the operating activities, prepared using the indirect method, would reflect a net increase as a result of this investment of __________. The answer is $20,000. Puddle Corporation acquired 90% of Suds Company's common stock on January 1, 20X1 for $32,000 cash when Sud's stockholders' equity consisted of: Common Stock $20,000 Retained Earnings $ 4,000 A determination and distribution schedule was prepared for the difference between the price paid by Puddles and the underlying equity acquired in Suds with the excess of cost over book value being allocated as: Inventory (undervalued) $ 400 Building & Equipment (undervalued) 2,000 Patent 8,000 Allocated excess cost over book value $10,400 ======= The inventory was sold during 20X1, and the building and equipment are being depreciated for 5 years using the straight-line method. The Patent is expected to have a 10-year useful life. The separate December 31, 20X1 financial statements for Puddle and Suds is attached. Complete the worksheet and provide supporting calculations as needed and an explanation of the elimination and adjustment entries. Supernova Company had the following summarized balance sheet on December 31, 20X1: Assets Accounts receivable.................................... $ 200,000 Inventory.............................................. 450,000 Property and plant (net)............................... 600,000 Goodwill............................................... 150,000 Total................................................ $1,400,000 ========== Liabilities and Equity Notes payable.......................................... $ 600,000 Common stock, $5 par................................... 300,000 Paid-in capital in excess of par....................... 400,000 Retained earnings...................................... 100,000 Total................................................ $1,400,000 ========== The fair value of the inventory and property and plant is $600,000 and $850,000, respectively. Assume that Redstar Corporation purchases 100% of the common stock of Supernova Company for $1,800,000. What value will be assigned to the following accounts of the Supernova Company when preparing a consolidated balance sheet on December 31, 20X1? 1) Inventory ___________ 2.) Property and Plant ___________ 3.) Goodwill ___________ 4) Noncontrolling Interest b.) Prepare a supporting determination and distribution of excess schedule