On January 1, 2017, P purchased 80% of the capital stock of S for $80,000. S had common stock of $80,000 and retained earnings of $16,000 at that time. On December 31, 2021, the trial balances of the two companies were: P S Cash 13,000 14,000 Accounts receivable 37,000 36,000 Investment in S Company 96,000 0 Plant and equipment 60,000 45,000 Land 18,000 12,000 Dividends declared 10,000 12,000 Inventory, 12/31 60,800 15,000 Cost of Sales and Expenses 50,000 30,000 Total debits 331,800 164,000 Liabilities 20,000 6,000 Common stock 120,000 80,000 Retained earnings 57,400 30,000 Sales 120,000 48,000 14,400 Equity in subsidiary income 0 331,800 164,000 Total credits Any difference between book value and the value implied by the purchase price relates to Land. You are required to: (a) Prepare the working paper entry on December 31, 2021, to eliminate the Equity in subsidiary income and intercompany dividends. Answer: Debit Credit Equity in subsidiary income [A] Dividends declared - S [B] [C] Investment account (b) Prepare the working paper elimination entries on December 31, 2021, to eliminate the investment account. Answer: Debit Credit Common stock [D] Retained earnings [E] [F] Difference - implied and book values Noncontrolling interest [G] [H] Investment in S company (c) Noncontrolling interest to be included on the Balance Sheet on December 31, 2021 - Hint: Take the noncontrolling interest amount you found in (b), and add the non-controlling interest share in Sincome for the year ended December 31, 2021 after deducting dividends to non-controlling interest. Answer: 0