On January 1, 2014, Petunia Company bought an 85% interest in the capital stock of Sunflower Company for $3,400 (Cash + Shares of Petunia Company). Petunia Company uses the equity method to record its investment in Sunflower Company.

The plant is undervalued by $700 (7 year remaining life) and the equipment is overvalued by 200 (10 year remaining life) on January 1, 2014.

Balance sheet for the Petunia and Sunflower at acquisition are included on the December 31, Consolidation worksheets below.

Required: Answer all the questions below.

1. What is the total fair value of Sunflower at acquisition?

2. What is the goodwill of Sunflower at acquisition?

3. What is the amount of non-controlling interest reported at acquisition on the January 1, 2014 balance sheet?

4. Prepare the entries to eliminate any income earned from Sunflower Corporation during 2014.

5. Prepare the entry to eliminate Petunia's investment in Sunflower at December 31, 2014.

6. What is the common stock of the consolidated company at December 31, 2014?

7. What is the retained earnings of the consolidated company at December 31, 2014?

8. What is the dividend declared of the consolidated company for the year ended December 31, 2014?

9. What is the net income attributable to the controlling interest for the year ended December 31, 2014?

10. What is the net income attributable to the non-controlling interest for the year ended December 31, 2014?

11. What is the amount of non-controlling interest for the year ended December 31, 2014?

12. Consolidated statements worksheet

Consolidated statements workpaper for Petunia Corporation and Subsidiary for December 31, 2014. PETUNIA COMPANY AND SUBSIDIARY Consolidated Statements Workpaper For the Year Ended December 31, 2014 Petunia Sunflower Company Compan Eliminations Noncontrolling Consolidated Interest Balances Income Statement ales 4,400) 498 4,898 3,600 160 uity in Subsidiary Earnin Total Revenue of Goods Sold 800 120 ciation Ex Total Cost &Ex 4,000 1,120 solidated Income 898 lling Interest in Income et Income to Controlling interest 898 ine 1/1 Retained Earnin 920 et Income from above 898 ividends Declared 12/31 Retained Earnings to Balance 38 1,360 Petunia Sunflower Eliminations Noncontrolling Consolidated Company Compan Interest Balances Balance Sheet 290 1,040 960 260 760 700 nts Receivable nvestment in Sunflower 3.706 1,280 1,120 Plant and E ent 1,430 Total Assets ts otes Payable 7.426 528 360 4,000 538 4,120 440 120 ble n Stock 1,360 Retained Earnings from above 1/1 Noncontrolling Interest 12/31 Noncontrolling Interest Total Liabilities &Equit (7,426) (4,12