****IF YOU GIVE ME 63,760 FOR DIFFERENCE BETWEEN IMPLIED AND BOOK YOU ARE WRONG!!!! 63,760 IS INCORRECT! DO NOT GIVE ME THE SAME ANSWER THAT I POST ON HERE. DO NOT ATTEMPT IF YOU DO NOT KNOW THE ANSWER

Problem 3-1 The two following separate cases show the financial position of a parent company and its subsidiary company on November 30, 2014, just after the parent had purchased 90% of the subsidiary's stock: Case I Case II P Company $ 873,500 188,500 1,396,800 89,100 $2,547,900 S Company $258,800 P Company s 782,100 188,500 1,202,000 69,300 $2,241,900 S Company $277,200 Current assets Investment in S Company Long-term assets Other assets 396,300 40,200 $695,300 396,300 70,000 $743,500 Total Current liabilities Long-term liabilities Common stock Retained earnings 645,100 852,100 598,500 452,200 $2,547,900 $267,400 289,300 179,300 (40,700) $695,300 701,100 920,000 598,500 22,300 $2,241,900 $258,900 269,300 179,300 36,000 $743,500 Total Case I: Prepare a November 30, 2014, consolidated balance sheet workpaper. Any difference between book value of equity and the value implied by the purchase price relates to subsidiary long-term assets. (Round answers to 0 decimal places, e.g. 125.) P COMPANY AND SUBSIDIARY Consolidated Balance Sheet Workpaper November 30, 2014 Eliminations Noncontrolling Consolidated Case I Company Company Dr. Cr. Interest Balance Current Assets $873,500 $258,800 1132300 Investment in S Company 188,500 188500 Difference between Implied and Book Value 63760 63760 Long-term Assets 1,396,800 396,300 63760 1856860 Other Assets 89,100 40,200 129300 Total Assets 2,547,900 695,300 3243200 Current Liabilities 645,100 267,400 912500 Long-term Liabilities 852,100 289,300 1141400 Common Stock Other Assets 89,100 40,200 129300 Total Assets 2,547,900 695,300 3243200 Current Liabilities 645,100 267,400 912500 Long-term Liabilities 852,100 289,300 1141400 Common Stock: P Company 598,500 598500 S Company 179,300 179300 Retained Earnings P Company 452,200 452200 S Company (40,700) 40700 Noncontrolling Interest 36630 36630 36630 Total Liabilities and Equity $2,547,900 $695,300 306820 306820 3243200