On Jan 1, 2011, Peter Piper?s Corp purchased an 80% interest in the common stock of Suzy Q for $350,000.00 Sunflower had the following Balance Sheet on the date of acquisition:

Suzy Q?s Corporation

Balance Sheet

Jan 1, 2011

Assets: Liabilities & Equity

Accounts Receivable $40,000. Accounts Payable $42,297

Inventory 20,000. Bonds Payable $100,000

Land 35,000 Discount on BP (2,297)

Buildings 250,000. Common Stk ($10 par) $10,000

Accumulated Depreciation (50,000) Paid in Capital $90,000

Equipment $120,000 Retained Earnings $115,000.

Accumulated Depreciation (60,000)

Total $355,000 Total $355,000

A comparison of the FMV determined the following:

Inventory $15,000

Buildings $380,000 10 year life

Equipment $45,000 5 year life

Patent $25,000 10 year life

Bonds Payable $105,000 5 year life

Answer the following questions completely, showing all work. On Jan 1, 2011, Peter Piper's Corp purchased an 80% interest in the common stock of Suzy Q for $350,000.00 Sunflower had the following Balance Sheet on the date of acquisition: Suzy Q's Corporation Balance Sheet Jan 1, 2011 Assets: Liabilities & Equity Accounts Receivable Inventory Land Buildings Accumulated Depreciation Equipment Accumulated Depreciation Total $40,000. 20,000. 35,000 250,000. (50,000) $120,000 (60,000) $355,000 Accounts Payable $42,297 Bonds Payable $100,000 Discount on BP (2,297) Common Stk ($10 par) $10,000 Paid in Capital $90,000 Retained Earnings $115,000. Total $355,000 A comparison of the FMV determined the following: Inventory Buildings Equipment Patent Bonds Payable $15,000 $380,000 10 year life $45,000 5 year life $25,000 10 year life $105,000 5 year life Petunia and Sunflower had the following Trial Balances on Dec 31, 2013 Petunia Cash Accounts Receivable Inventory Land Investment in Sub Computers Buildings Accumulated Depreciation Equipment Accumulated Depreciation Accounts Payable Bonds Payable Discount on Bonds Payable Common Stock Paid-in Capital Retained Earnings Sales Cost of Goods Sold Depreciation Expense-Buildings Depreciation Expense-Equipment Other Expenses Interest Revenue Interest Expense Subsidiary Income Dividends Declared Total $71,070 90,000 100,000 150,000 385,738 100,775 500,000 ($300,000) 200,000 (100,000) (55,000) 0 0 (100,000) (600,000) (400,000) (600,000) 410,000 30,000 15,000 110,000 (7,845) 0 (19,738) 20,000 -0- Sunflower $32,032 60,000 30,000 45,000 0 0 250,000 ($70,000) 120,000 (84,000) (25,000) (100,000) 1,640 (10,000) (90,000) (145,000) (220,000) 120,000 10,000 12,000 45,000 0 8,328 0 10,000 -0- Prepare the worksheet necessary to produce the Consolidated Financial Statements for Petunia and Sunflower for the year ended Dec 31, 2013. Include the Determination and Distribution of Excess Schedule. Trial Balance Parent Subsidiary Elimination Adjustments Dr. Cr Consol I/SInco me NCI ( ) % Retaine d Earn (P) Consol Balance Petunia Corporation and Subsidiary Sunflow Worksheet for Consolidated Financial For the year ended Dec 31, 201 Trial Balance Particulars Cash Accounts Receivable Inventory Land Investment in Sub-Stock Investment in Sub-Bonds Buildings Accumulated Depreciation Equipment Accumulated Depreciation Patent Goodwill Accounts Payable Bonds Payable Discount on Bonds Payable premium on Bonds payable Common Stock Paid-in Capital Retained Earnings-S Retained Earnings -P Sales Cost of Goods Sold Depreciation Expense-Buildings Depreciation Expense-Equipment Other Expenses Interest Revenue Interest Expense Subsidiary Income Dividends Declared retaing earning 12/31/13 NCI in Sunflower 1/1/13 NCI in Sunflower 12/31/13 NCI total Parent Subsidiary $71,070 $90,000 $100,000 $150,000 $385,738 $100,775 $500,000 ($300,000) $200,000 ($100,000) $32,032 $60,000 $30,000 $45,000 $250,000 ($70,000) $120,000 ($84,000) ($55,000) - ($25,000) ($100,000) $1,640 ($100,000) ($600,000) ($400,000) ($600,000) $410,000 $30,000 $15,000 $110,000 ($7,845) ($19,738) $20,000 ($442,583) ($10,000) ($90,000) ($145,000) ($220,000) $120,000 $10,000 $12,000 $45,000 $8,328 $10,000 ($159,672) - Life in years Consideration transferred Noncontrolling interest fair value Subsidiary fair value at acquisition-date Book value Fair value in excess of book value Excess fair value assigned to inventory (overvalued) Excess fair value assigned to buildings (undervalued) Excess fair value assigned to equipment (overvalued) Excess fair value assigned to patent (undervalued) Excess fair value assigned to bonds payable (underva Goodwill 350,000 87,500 437,500 (215,000) 222,500 (5,000) 180,000 (15,000) 25,000 (7,297) 44,797 1 10 5 10 Elimination Entries: Retained earnings, 1/1/13 (Petunia) Investment in Sunflower Common stock Paid-in Capital Retained earnings, 1/1/13 -- Sunflower Investment in Sunflower Company NCI in Sunflower, 1/1/13 Accumulated Depreciation -- Building Patent Goodwill Accumulated Depreciation -- Equipment Discount on Bonds Payable Premium on Bonds Payable Investment in Sunflower Company NCI in Sunflower, 1/1/13 Subsidiary income Investment in Sunflower Company Investment in Sunflower Company Dividends declared 22,050 22,050 159,672 (120,000) 31,738 7,934 144,000 20,000 44,797 9,000 1,640 3,219 155,950 38,988 (100,000) (100,000) 8,000 8,000 Depreciation expense - Buildings Accumulated depreciation - Buildings 18,000 18,000 Accumulated depreciation - Equipment Depreciation expense - Equipment 3,000 Other expenses Patent 2,500 Premium on Bonds Payable Interest expense 1,219 3,000 2,500 Consolidated net income to non-controlling interest Sunflower reported net income Amortization of undervalued buildings Amortization of overvalued equipment Amortization of unrecognized patent Amortization of undervalued bonds Separate company net income of Sunflower, adjusted Multiplied by: Outside ownership percentage Consolidated net income attributable to the non-controlling interes 1,219 (45,000) (18,000) 3,000 (2,500) 1,219 (61,281) 0.20 (12,256) nd Subsidiary Sunflower Corporation onsolidated Financial Statements year ended Dec 31, 2013. Elimination Adjustments Consol I/SIncome Dr. Cr 8,000.00 ($393,738) 144,000.00 ($18,000) $3,000 $20,000 $44,797 ($9,000) ($2,500) 1,219.00 $10,000 $90,000 $145,000 $22,050 NCI ($1,640) ($3,219) $18,000 ($3,000) $2,500 ($1,219) $19,738 ($8,000) ($880,000) $530,000 $58,000 $24,000 $157,500 ($7,845) $7,109 $0 $22,000 $2,000 Retained Earn Consol Balance (P) $103,102 $150,000 $130,000 $195,000 $0 $100,775 $750,000 ($244,000) $320,000 $190,000 $17,500 44,797.00 ($80,000) ($100,000) ($2,000) ($100,000) ($600,000) ($377,950) ($820,000) $530,000 $58,000 $24,000 $157,500 ($7,845) $7,109 $0 $20,000 ($407,509) ($87,988) ($1,678) $1,678 $528,304 Annual Excess Amort. (5,000) 18,000 (3,000) 2,500 ($528,304) ($87,988) ($87,666) Petunia Corporation and Subsidiary Sunflower Co Worksheet for Consolidated Financial Statem For the year ended Dec 31, 2013. Trial Balance Elimination Adjustments Particulars Cash Accounts Receivable Inventory Land Investment in Sub-Stock Investment in Sub-Bonds Buildings Accumulated Depreciation Equipment Accumulated Depreciation Patent Goodwill Accounts Payable Bonds Payable Discount on Bonds Payable premium on Bonds payable Common Stock Paid-in Capital Retained Earnings-S Retained Earnings -P Sales Cost of Goods Sold Depreciation Expense-Buildings Depreciation Expense-Equipment Other Expenses Interest Revenue Interest Expense Subsidiary Income Dividends Declared retaing earning 12/31/13 NCI in Sunflower 1/1/13 NCI in Sunflower 12/31/13 NCI total Parent Subsidiary $71,070 $90,000 $100,000 $150,000 $385,738 $100,775 $500,000 ($300,000) $200,000 ($100,000) $32,032 $60,000 $30,000 $45,000 $250,000 ($70,000) $120,000 ($84,000) ($55,000) - ### ($25,000) ($100,000) $1,640 ($100,000) ($600,000) ($400,000) ($600,000) $410,000 $30,000 $15,000 $110,000 ($7,845) ($19,738) $20,000 ($442,583) ($10,000) ($90,000) ($145,000) ($220,000) $120,000 $10,000 $12,000 $45,000 $8,328 $10,000 ($159,672) Dr. 8,000.00 ### $3,000 $20,000 $44,797 1,219.00 $10,000 $90,000 $145,000 $22,050 $18,000 $2,500 $19,738 $528,304 Life in years Consideration transferred Noncontrolling interest fair value Subsidiary fair value at acquisition-date Book value Fair value in excess of book value Excess fair value assigned to inventory (overvalu Excess fair value assigned to buildings (underval Excess fair value assigned to equipment (overval Excess fair value assigned to patent (undervalue Excess fair value assigned to bonds payable (und Goodwill 350,000 87,500 437,500 (215,000) 222,500 (5,000) 180,000 (15,000) 25,000 (7,297) 44,797 1 10 5 10 Elimination Entries: Retained earnings, 1/1/13 (Petunia) Investment in Sunflower Common stock Paid-in Capital Retained earnings, 1/1/13 -- Sunflower Investment in Sunflower Company NCI in Sunflower, 1/1/13 Accumulated Depreciation -- Building Patent Goodwill Accumulated Depreciation -- Equipment Discount on Bonds Payable Premium on Bonds Payable Investment in Sunflower Company NCI in Sunflower, 1/1/13 Subsidiary income Investment in Sunflower Company Investment in Sunflower Company 22,050 22,050 159,672 (120,000) 31,738 7,934 144,000 20,000 44,797 9,000 1,640 3,219 155,950 38,988 (100,000) (100,000) 8,000 Annual Excess Amort. (5,000) 18,000 (3,000) 2,500 Dividends declared Depreciation expense - Buildings Accumulated depreciation - Buildings 8,000 18,000 18,000 Accumulated depreciation - Equipment Depreciation expense - Equipment 3,000 Other expenses Patent 2,500 Premium on Bonds Payable Interest expense 1,219 3,000 2,500 1,219 Consolidated net income to non-controlling interest Sunflower reported net income 24,672 Amortization of undervalued buildings (18,000) Amortization of overvalued equipment 3,000 Amortization of unrecognized patent (2,500) Amortization of undervalued bonds 1,219 Separate company net income of Sunflower, adjusted 8,391 Multiplied by: Outside ownership percentage 0.20 Consolidated net income attributable to the non-controlling i 1,678 diary Sunflower Corporation ed Financial Statements d Dec 31, 2013. Elimination Adjustments Cr Consol I/SIncome NCI ($393,738) ($18,000) ($9,000) ($2,500) ($1,640) ($3,219) ($3,000) ($1,219) ($8,000) ($880,000) $530,000 $58,000 $24,000 $157,500 ($7,845) $7,109 $0 $22,000 $2,000 ($87,988) ($1,678) Retained Earn (P) Consol Balance $103,102 $150,000 $130,000 $195,000 $0 $100,775 $750,000 ($244,000) $320,000 ($190,000) $17,500 $44,797 ($80,000) ($100,000) $0 ($2,000) ($100,000) ($600,000) ($377,950) ($820,000) $530,000 $58,000 $24,000 $157,500 ($7,845) $7,109 $0 $22,000 ($407,509) ($528,304) ($87,988) ($87,666) Petunia Corporation and Subsidiary Sunflow Worksheet for Consolidated Financial For the year ended Dec 31, 201 Trial Balance Particulars Cash Accounts Receivable Inventory Land Investment in Sub-Stock Investment in Sub-Bonds Buildings Accumulated Depreciation Equipment Accumulated Depreciation Patent Goodwill Accounts Payable Bonds Payable Discount on Bonds Payable premium on Bonds payable Common Stock Paid-in Capital Retained Earnings-S Retained Earnings -P Sales Cost of Goods Sold Depreciation Expense-Buildings Depreciation Expense-Equipment Other Expenses Interest Revenue Interest Expense Subsidiary Income Dividends Declared retaing earning 12/31/13 NCI in Sunflower 1/1/13 NCI in Sunflower 12/31/13 NCI total Parent Subsidiary $71,070 $90,000 $100,000 $150,000 $385,738 $100,775 $500,000 ($300,000) $200,000 ($100,000) $32,032 $60,000 $30,000 $45,000 $250,000 ($70,000) $120,000 ($84,000) ($55,000) - ($25,000) ($100,000) $1,640 ($100,000) ($600,000) ($400,000) ($600,000) $410,000 $30,000 $15,000 $110,000 ($7,845) ($19,738) $20,000 ($442,583) ($10,000) ($90,000) ($145,000) ($220,000) $120,000 $10,000 $12,000 $45,000 $8,328 $10,000 ($159,672) - Life in years Consideration transferred Noncontrolling interest fair value Subsidiary fair value at acquisition-date Book value Fair value in excess of book value Excess fair value assigned to inventory (overvalued) Excess fair value assigned to buildings (undervalued) Excess fair value assigned to equipment (overvalued) Excess fair value assigned to patent (undervalued) Excess fair value assigned to bonds payable (underva Goodwill 350,000 87,500 437,500 (215,000) 222,500 (5,000) 180,000 (15,000) 25,000 (7,297) 44,797 1 10 5 10 Elimination Entries: Retained earnings, 1/1/13 (Petunia) Investment in Sunflower Common stock Paid-in Capital Retained earnings, 1/1/13 -- Sunflower Investment in Sunflower Company NCI in Sunflower, 1/1/13 Accumulated Depreciation -- Building Patent Goodwill Accumulated Depreciation -- Equipment Discount on Bonds Payable Premium on Bonds Payable Investment in Sunflower Company NCI in Sunflower, 1/1/13 Subsidiary income Investment in Sunflower Company Investment in Sunflower Company Dividends declared 22,050 22,050 159,672 (120,000) 31,738 7,934 144,000 20,000 44,797 9,000 1,640 3,219 155,950 38,988 (100,000) (100,000) 8,000 8,000 Depreciation expense - Buildings Accumulated depreciation - Buildings 18,000 18,000 Accumulated depreciation - Equipment Depreciation expense - Equipment 3,000 Other expenses Patent 2,500 Premium on Bonds Payable Interest expense 1,219 3,000 2,500 Consolidated net income to non-controlling interest Sunflower reported net income Amortization of undervalued buildings Amortization of overvalued equipment Amortization of unrecognized patent Amortization of undervalued bonds Separate company net income of Sunflower, adjusted Multiplied by: Outside ownership percentage Consolidated net income attributable to the non-controlling interes 1,219 (45,000) (18,000) 3,000 (2,500) 1,219 (61,281) 0.20 (12,256) nd Subsidiary Sunflower Corporation onsolidated Financial Statements year ended Dec 31, 2013. Elimination Adjustments Consol I/SIncome Dr. Cr 8,000.00 ($393,738) 144,000.00 ($18,000) $3,000 $20,000 $44,797 ($9,000) ($2,500) 1,219.00 $10,000 $90,000 $145,000 $22,050 NCI ($1,640) ($3,219) $18,000 ($3,000) $2,500 ($1,219) $19,738 ($8,000) ($880,000) $530,000 $58,000 $24,000 $157,500 ($7,845) $7,109 $0 $22,000 $2,000 Retained Earn Consol Balance (P) $103,102 $150,000 $130,000 $195,000 $0 $100,775 $750,000 ($244,000) $320,000 $190,000 $17,500 44,797.00 ($80,000) ($100,000) ($2,000) ($100,000) ($600,000) ($377,950) ($820,000) $530,000 $58,000 $24,000 $157,500 ($7,845) $7,109 $0 $20,000 ($407,509) ($87,988) ($1,678) $1,678 $528,304 Annual Excess Amort. (5,000) 18,000 (3,000) 2,500 ($528,304) ($87,988) ($87,666) Petunia Corporation and Subsidiary Sunflower Co Worksheet for Consolidated Financial Statem For the year ended Dec 31, 2013. Trial Balance Elimination Adjustments Particulars Cash Accounts Receivable Inventory Land Investment in Sub-Stock Investment in Sub-Bonds Buildings Accumulated Depreciation Equipment Accumulated Depreciation Patent Goodwill Accounts Payable Bonds Payable Discount on Bonds Payable premium on Bonds payable Common Stock Paid-in Capital Retained Earnings-S Retained Earnings -P Sales Cost of Goods Sold Depreciation Expense-Buildings Depreciation Expense-Equipment Other Expenses Interest Revenue Interest Expense Subsidiary Income Dividends Declared retaing earning 12/31/13 NCI in Sunflower 1/1/13 NCI in Sunflower 12/31/13 NCI total Parent Subsidiary $71,070 $90,000 $100,000 $150,000 $385,738 $100,775 $500,000 ($300,000) $200,000 ($100,000) $32,032 $60,000 $30,000 $45,000 $250,000 ($70,000) $120,000 ($84,000) ($55,000) - ### ($25,000) ($100,000) $1,640 ($100,000) ($600,000) ($400,000) ($600,000) $410,000 $30,000 $15,000 $110,000 ($7,845) ($19,738) $20,000 ($442,583) ($10,000) ($90,000) ($145,000) ($220,000) $120,000 $10,000 $12,000 $45,000 $8,328 $10,000 ($159,672) Dr. 8,000.00 ### $3,000 $20,000 $44,797 1,219.00 $10,000 $90,000 $145,000 $22,050 $18,000 $2,500 $19,738 $528,304 Life in years Consideration transferred Noncontrolling interest fair value Subsidiary fair value at acquisition-date Book value Fair value in excess of book value Excess fair value assigned to inventory (overvalu Excess fair value assigned to buildings (underval Excess fair value assigned to equipment (overval Excess fair value assigned to patent (undervalue Excess fair value assigned to bonds payable (und Goodwill 350,000 87,500 437,500 (215,000) 222,500 (5,000) 180,000 (15,000) 25,000 (7,297) 44,797 1 10 5 10 Elimination Entries: Retained earnings, 1/1/13 (Petunia) Investment in Sunflower Common stock Paid-in Capital Retained earnings, 1/1/13 -- Sunflower Investment in Sunflower Company NCI in Sunflower, 1/1/13 Accumulated Depreciation -- Building Patent Goodwill Accumulated Depreciation -- Equipment Discount on Bonds Payable Premium on Bonds Payable Investment in Sunflower Company NCI in Sunflower, 1/1/13 Subsidiary income Investment in Sunflower Company Investment in Sunflower Company 22,050 22,050 159,672 (120,000) 31,738 7,934 144,000 20,000 44,797 9,000 1,640 3,219 155,950 38,988 (100,000) (100,000) 8,000 Annual Excess Amort. (5,000) 18,000 (3,000) 2,500 Dividends declared Depreciation expense - Buildings Accumulated depreciation - Buildings 8,000 18,000 18,000 Accumulated depreciation - Equipment Depreciation expense - Equipment 3,000 Other expenses Patent 2,500 Premium on Bonds Payable Interest expense 1,219 3,000 2,500 1,219 Consolidated net income to non-controlling interest Sunflower reported net income 24,672 Amortization of undervalued buildings (18,000) Amortization of overvalued equipment 3,000 Amortization of unrecognized patent (2,500) Amortization of undervalued bonds 1,219 Separate company net income of Sunflower, adjusted 8,391 Multiplied by: Outside ownership percentage 0.20 Consolidated net income attributable to the non-controlling i 1,678 diary Sunflower Corporation ed Financial Statements d Dec 31, 2013. Elimination Adjustments Cr Consol I/SIncome NCI ($393,738) ($18,000) ($9,000) ($2,500) ($1,640) ($3,219) ($3,000) ($1,219) ($8,000) ($880,000) $530,000 $58,000 $24,000 $157,500 ($7,845) $7,109 $0 $22,000 $2,000 ($87,988) ($1,678) Retained Earn (P) Consol Balance $103,102 $150,000 $130,000 $195,000 $0 $100,775 $750,000 ($244,000) $320,000 ($190,000) $17,500 $44,797 ($80,000) ($100,000) $0 ($2,000) ($100,000) ($600,000) ($377,950) ($820,000) $530,000 $58,000 $24,000 $157,500 ($7,845) $7,109 $0 $22,000 ($407,509) ($528,304) ($87,988) ($87,666)