On December 31, 20X8, P Corporation acquired 80 percent of S Company's common stock for $104,000 cash. The fair value of the noncontrolling interest at that date was determined to be $26,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:

On that date, the book values of S's assets and liabilities approximated fair value except for inventory, which had a fair value of $45,000, and buildings and equipment, which had a fair value of $100,000. At December 31, 20X8, P reported accounts payable of $15,000 to S, which reported an equal amount in its accounts receivable.

Required:

1. Provide the consolidating entries needed to prepare a consolidated balance sheet immediately following the business combination.
2. Prepare a consolidated balance sheet worksheet.

Use Excel formulas to make or evidence each of your calculations of all dollar amounts. Do not enter any dollar amounts directly, unless it is unavoidable for obvious reasons. Use the tab function at the bottom of the Excel file to complete the assignment.

Prepare and submit one Excel spreadsheet for this assignment. Use the following naming convention for your file: MyNameCTA3Option2.

Requirements:

• Show calculations for all questions.
• Support the writing portion of the assignment (if applicable) with credible sources.
• Use terms, evidence, and concepts from class readings, including professional business language.
• Review the weeks CT Assignment grading rubric for more information on expectations and how you will be graded.