On Jan. 1 Year 1, P spent 250 million to buy 100% of S. At that date, some key numbers (in millions) are:

S common stock 15

S paid-in capital 20

S retained earnings 80

Total book equity = 115

All of the assets and liabilities of S had book values = fair values, exc8pt:

Intangible assets of S (book value = zero, but fair value = 30. Life = 5 years).

Building had book value = 120 but fair value = 130. Life = 10 years.

At the end of year 1, the books of the two companies reflect the following:

			P	S
			Book value	Book value
Cash			300	63
Receivables (30 receivable by P from S)			105	12
Inventory			15	13
Land			35	10
Buildings (net of deprec.)			300	100
Investment in S			269	0
Intangible assets			26	0
Goodwill			0	0
	total assets		1050	198
Accounts payable (30 payable by S to P)			26	38
Accrued liabilities			29	10
long-term bonds			340	9
	total liabilities		395	57
Common stock of P, at par			25
Common stock of S, at par				15
Additional paid-in capital			85	20
retained earnings (ending)			545	106
	total equity		655	141
Total liabilities + equity			1050	198
Revenues			294	136
Expenses			203	100
Income from subsidiary			29
Dividends (S paid 10 to P)			30	10
Beginning Retained earnings			455	80
Ending retained earnings			545	106

6. What is the correct consolidated balance for land? (1/2 point)

7. What is the correct consolidated balance for Receivables? (1/2 point)

8. What is the correct consolidated balance for Buildings, net of depreciation? (1/2 point)

9. What is the correct consolidated balance for additional paid-in capital? (1/2 point)

10. What is the correct consolidated balance for investment in S? (1/2 point)

11. What is the correct consolidated balance for goodwill? (1/2 point)

12. What is the correct consolidated balance for net income? (1/2 point)

13. What is the appropriate amortization and/or deprecation , if any, to be recorded this year in consolidation entries with regard to the acquisition of S? (1/2 point)

14. What is the correct consolidated balance for revenues? (1/2 point)

15. Give the consolidation entry, if any, that would be needed with regard to the dividends paid by S to P (1 point)

16. Give the consolidation entry, if any, that would be needed with regard to the equity in earnings of subsidiary recorded by the parent company. (1 point)