On January 1, 2013 Daisy Company acquired 80% of Rose Company for $594,000 in cash. Rose's total book value on that date was $610,000 and the fair value of the noncontrolling interest was $148,500. Rose possessed a trademark (10-year remaining life) that, although unrecorded on Rose's accounting records, had a fair value of $75,000. Any remaining excess acquisition-date fair value was attributed to goodwill.

Daisy acquired Rose so that the subsidiary could provide component parts for Daisy's production process. During the ensuing years, Rose sold inventory to Daisy as shown in the table below. Any of this inventory that Daisy had at year-end was put into production during the following year.

On January 1, 2014 Daisy sold Rose several pieces of equipment that ha a 10-year remaining life and were being depreciated on the straight-line method with no salvage value. This equipment was sold for $80,000 and had an original cost of $100,000 and a $44,000 book value on the date of sale.

On January 1, 2015 Daisy sold land to Rose for $50,000, its fair value on that date. The land's original cost was $22,000. By the end of 2015 Rose had made no payment on the land.

The December 31, 2015 financial statements for Daisy and Rose are provided on the next tab. Daisy uses the equity method to account for its investment in Rose.

On January 1, 2013 Daisy Company acquired 80% of Rose Company for $594,000 in cash. Rose's total book value on that date was $610,000 and the fair value of the noncontrolling interest was $148,500. Rose possessed a trademark (10-year remaining life) that, although unrecorded on Rose's accounting records, had a fair value of $75,000. Any remaining excess acquisition-date fair value was attributed to goodwill. Daisy acquired Rose so that the subsidiary could provide component parts for Daisy's production process. During the ensuing years, Rose sold inventory to Daisy as shown in the table below. Any of this inventory that Daisy had at year-end was put into production during the following year. On January 1, 2014 Daisy sold Rose several pieces of equipment that ha a 10-year remaining life and were being depreciated on the straight-line method with no salvage value. This equipment was sold for $80,000 and had an original cost of $100,000 and a $44,000 book value on the date of sale. On January 1, 2015 Daisy sold land to Rose for $50,000, its fair value on that date. The land's original cost was $22,000. By the end of 2015 Rose had made no payment on the land. The December 31, 2015 financial statements for Daisy and Rose are provided on the next tab. Daisy uses the equity method to account for its investment in Rose. Inventory Sales from Rose to Daisy Year Cost to Rose Sell Price to Daisy Gross Profit Rate Daisy Year-End Inventory 2013 $ 100,000 $ 140,000 28.60% $ 20,000 2014 $ 100,000 $ 150,000 33.30% $ 30,000 2015 $ 120,000 $ 160,000 25.00% $ 68,000 Required: Complete the consolidation worksheet at December 31, 2015. List the required consolidation journal entries on the Entries tab. 31-Dec-15 Daisy Rose Income Statement: Sales 900,000 500,000 Cost of Goods Sold 598,000 300,000 Gross Profit 302,000 200,000 Operating Expenses 210,000 80,000 Operating Income 92,000 120,000 Gain on Sale of Land 28,000 Equity Income from Rose Company 60,000 Attrib. to NCI Attrib. to Parent Net Income 180,000 120,000 Retained Earnings, 1/1 620,000 430,000 Net income 180,000 120,000 55,000 50,000 745,000 500,000 Cash and Accounts Receivable 348,000 410,000 Inventory 430,400 190,000 Investment in Rose Company 737,600 Land 454,000 280,000 Equipment 270,000 190,000 (180,000) (50,000) Statement of Retained Earnings: Dividends Retained Earnings, 12/31 Balance sheet: Assets Accumulated Depreciation Patent Goodwill 2,060,000 1,020,000 Liabilities 715,000 120,000 Common Stock 600,000 400,000 Retained Earnings 745,000 500,000 2,060,000 1,020,000 Liabilities and Stockholders' Equity Noncontrolling interest Dr Cr Consolidated