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On January 1, 2018, PPP Company purchased 80% of SSS Company for $960,000. At that time SSS had capital stock outstanding of $400,000 and retained

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On January 1, 2018, PPP Company purchased 80% of SSS Company for $960,000. At that time SSS had capital stock outstanding of $400,000 and retained earnings of $400,000. The book value and the value implied are equal with exception of plant and equipment. At the end of 2018, PPP Company had in its ending inventory $54,000 of merchandise it had purchased from SSS Company during the year. SSS Company sold the merchandise at 20% above cost. During 2019, PPP Company sold merchandise to SSS Company for $300,000 at a markup of 20% of the selling price. At December 31, 2019, SSS still had merchandise that it purchased from PPP Company for $78,000 in its inventory. Financial data for 2019 are presented here: PPP Company SSS Company Sales $1,385,000 $720,000 Equity in Subsidiary Income 153,600 Total Revenue 1538,600 720,000 Cost of Goods Sold: Beginning Inventory 210,000 155,000 Purchases 875,000 360,000 Cost of Goods Available 1,085,000 $15,000 Less: Ending Inventory 400,000 225,000 Cost of Goods Sold 685,000 290,000 Other Expense 225.000 216,000 Total Cost and Expense 910,000 506,000 Net Income S628,600 S214,000 1/1 Retained Earnings 1.419,500 450,000 Net Income 628,600 216,000 Dividends Declared (40,000) (30,000) 31/12 Retained Earnings $2.008.100 5634,000 90.000 65,000 Account Receivables 297,000 85,000 Inventory 400,000 225,000 Investment in SSS Company 1,138,000 Plant and Equipment (net) 880,000 540,000 Other Assets 384.0000 230,000 Total Assets $3,189,000 S1,145,000 Account Payable 24,300 25,000 Other Current Liabilities 95,000 86,000 Common Stock 1,061,600 400,000 Retained Earnings 2,008,100 634,000 Total Liabilities and Equity $3,189,000 S1,145,000 Required:Prepare the consolidated statements workpaper for the year ended December 31, 2019. Cash

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