1. On January 1, 2018, Peerfield Company acquired all of Seagate Companys voting stock for $20,000 in cash. Seagates total shareholders equity at January 1, 2018 was $5,000. Some of Seagates assets and liabilities at the date of acquisition had fair values that were different from reported values, as follows:

	Book Value	Fair Value
Plant assets, net (10 years, straight-line)	$15,000	$ 10,000
Identifiable intangibles (indefinite life)	0	9,000

It is now December 31, 2020 (3 years later).

• Impairment of recognized identifiable intangibles totals $400 for 2018 and 2019, and there is no impairment in 2020.
• There is no goodwill impairment as of the beginning of 2020, but goodwill impairment for 2020 is $1,200.
• Peerfield uses the complete equity method to account for its investment.

December 31, 2020 trial balances for Peerfield and Seagate follow:

	Peerfield Dr (Cr)	Seagate Dr (Cr)
Current assets	$ 5,000	$ 2,500
Plant assets, net	28,700	22,000
Investment in Seagate	28,400
Identifiable intangibles
Goodwill
Liabilities	(20,300)	(11,000)
Capital stock	(15,000)	(2,000)
Retained earnings, beginning	(25,000)	(10,000)
Sales revenue	(25,000)	(14,000)
Equity in net income of Seagate	(800)
Cost of goods sold	20,000	9,000
Operating expenses	4,000	3,500
	$ 0	$ 0

Using the attached workpaper template, prepare the consolidating workpaper for 2020 by hand.

OR

Download the Excel template from our D2L site under Materials/Content/Syllabus & General Resources Template Consolidating Workpaper