On January 1, 2014, Pun acquired 80% of Sun for $700,000 plus $30,000 in acquisition costs.

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Question: Complete a Consolidated Worksheet for Pun and its subsidiary Sun as of December 31, 2018.

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On the date of acquisition, Sun had the following balance sheet:

Sun Company Balance Sheet January 1, 2014

============================================== Assets

Accounts Receivable $120,000

Inventory 150,000

Land 250,000

Buildings 300,000 Accumulated Depreciation (160,000)

Equipment 170,000 Accumulated Depreciation (130,000)

Goodwill 100,000

Total Assets $800,000

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Liabilities and Equity

Current Liabilities $160,000

Bonds Payable 200,000

Common Stock, $1 par 150,000

Paid-in Capital 100,000

Retained Earnings 190,000

Total Liabilities and Equity $800,000

===================================================================== An appraisal indicates that the following items have fair values that differed from their book values:

Inventory 200,000 - Sold in 2014

Land 450,000

Buildings 340,000 - 20 year remaining life

Equipment 30,000 - 5 year remaining life

Bonds Payable 210,000 - 10 year remaining life

================================================= Pun and Sun had the following trial balances on December 31, 2018:

Cash - Pun 115,000 - Sun 100,000

Accounts Receivable - Pun 70,000 - Sun 130,000

Inventory - Pun 100,000 - Sun 200,000

Investment in Sun 700,000

Land - Pun 120,000 - Sun 150,000

Buildings - Pun 680,000 - Sun 300,000 Accumulated Depreciation - Pun (200,000) - Sun (188,000)

Equipment - Pun 160,000 - Sun 170,000 Accumulated Depreciation - Pun (85,000) - Sun (162,000)

Goodwill - Sun 100,000

Current Liabilities - Pun (60,000) - Sun (80,000)

Bonds Payable - Sun (200,000)

Common Stock - Pun (300,000) - Sun (150,000)

Paid-in-Capital - Pun (900,000) - Sun (100,000)

Retained Earnings, 1/1/18 - Pun (300,000) - Sun (250,000)

Sales - Pun (860,000) - Sun (500,000)

Cost of Goods Sold- Pun 660,000 - Sun 400,000

Other Expenses - Pun 106,000 - Sun 60,000

Dividend Income - Pun (16,000)

Dividends Declared - Pun 10,000 - Sun 20,000

Total - Pun $0 - Sun $0