On January 1, 2014, Paar Incorporated paid $38,500 for a 70% interest in Siba Enterprises, at a time when Siba's stockholder's equity consisted of $20,000 in Capital stock and $30,000 in Retained Earnings. The fair values of Siba's assets and liabilities equaled their recorded book values at that time, so any additional amount paid was attributed to goodwill. In 2014, Siba purchased merchandise from Paar at a price of $6,000. The products originally cost Paar $4,000, and 75% of this merchandise remained in inventory at December 31, 2014. This inventory was sold in 2015. Siba reported net income of $9,000 and paid dividends of $3,000 during 2014. In 2015, Siba purchased merchandise from Paar at a price of $8,000. The products had a cost to Paar of $7,000, and 50% of this merchandise remained in inventory at December 31, 2015. Siba still owed Paar $1,800 for these purchases at December 31, 2015. Required: Financial statements of Paar and Siba appear in the first two columns of the partially completed working papers. Complete the consolidation working papers for Paar Corporation and Subsidiary for the year ended December 31, 2015

Eliminations Debit Credit Consoli- dated Paar Siba INCOME STATEMENT sales $ 81,000 $ 24,000 Invest. income from Siba 8,700 ( 38,000)|(9,500) (12,700) (3,500) Cost of Sales Other expenses Noncontrolling linterest share Net income Retained Earnings 1/1 Add: Net income $ 39,000 $ 11,000 $ 59,500 $36,000 39,000 11,000 Less: Dividends ( 9,000) (4,000) Retained Earnings 12/31 $ 89,500 $43,000 BALANCE SHEET Cash $ 23,000 $ 5,000 Net Receivables 34,000 10,000 Dividend Receivable 1,400 Inventories 27,000 9,000 Goodwill Plant assets-net 37,000 62,000 Investment in siba 47,100 TOTAL ASSETS $169,500 $ 86,000 LIAB. & EQUITY Accounts payable $ 7,000 $ 11,000 Dividend payable 10,000 2,000 other debt 23,000 10,000 capital stock 40,000 20,000 Retained Earnings 89,500 43,000 1/1 Noncntrl. Interest 12/31 Noncntri. Interest TOTAL LIAB. & EQUITY $169,500 $ 86,000