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On January 1, 2019. Parflex Corporation exchanged $344.000 cash for 90 percent of Eagle Corporation's outstanding voting stock. Eagle's acquisition date balance sheet follows: Cash

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On January 1, 2019. Parflex Corporation exchanged $344.000 cash for 90 percent of Eagle Corporation's outstanding voting stock. Eagle's acquisition date balance sheet follows: Cash and receivables Inventory Property and equipment (net) $ 15,000 35,000 350.00 $ 400,000 Liabilities Common stock Retained earnings $ 76,000 15e,se 174,800 $ 480,000 On January 1, 2019. Parfiex prepared the following fair-value allocation schedule Consideration transferred by Parflex 10% noncontrolling interest fair value Fair value of Eagle Book value of Eagle Excess fair over book value to equipment (undervalued, remaining life of 9 years) to goodwill (indefinite life) $344,899 36.ece 380,000 324,00 56,000 18.cee $ 38,000 The companies' financial statements for the year ending December 31, 2021, follow: Parflex $ (862,880) 515,000 191,200 (79, 280) $ (235,000) Sales Cost of goods sold Depreciation expense Equity in Eagle's earnings Separate company net income Retained earnings 1/1 Net income Dividends declared Retained earnings 12/31 Eagle $ (366,088) 2e9,00 67,000 8 $ (90,000) $ (588,880) (235,880) 138,eee $ (605,880) 5 (278,000) (99,688) 27.ege $ (341,000) The companies financial statements for the year ending December 31, 2021, follow. Sales Cost of goods sold Depreciation expense Equity in Eagle's earnings Separate company net income Parflex $ (862,880) 515.000 191,200 (79.280) $ (235,000) Eagle $ (366,800) 209,880 67,880 $ (9e,) Retained earnings 1/1 Net income Dividends declared Retained earnings 12/31 $ (560,000) (235,888) 130,88 $ (685,680) $ (278,Bee) (9e, Bee) 27,000 $ (341,820) Cash and receivables Inventory Investnent in Eagle Property and equipment (net) Total assets $ 135.680 255,820 488,989 964,888 $ 1.842,92e 3 82.ee 136,080 e 328,00 $ 546,880 $ (722,980) (515,00) Liabilities Connon stock-Parflex Conton stock-Eagle Retained earnings 12/31 Total liabilities and owners' equity $ (55,820) (15e,see) (341,880 $ (546,080) (685,880) $(1.842,980) At year-end, there were no Intra-entity recevables or payables. a. Compute the goodwill allocation to the controlling and noncontrolling Interest. b. Show how Parflex determined its "Investment in Eagle account balance. c. Determine the amounts that should appear on Parflex's December 31, 2021, consolidated statement of financial position and its 2021 consolidated Income statement. Required A Required B Required c Determine the amounts that should appear on Parflex's December 31, 2021, consolidated statement of financial position and its 2021 consolidated income statement. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.) Show less Consolidated Totals PARFLEX CORPORATION AND EAGLE CORPORATION Consolidation Worksheet For Year Ending December 31, 2021 Adjustments & Elimination Noncontrolling Parflex Eagle Debit Credit Interest $ (882,000) $ (366,000) 515.000 209,000 191,200 67.000 (79,200) 0 S (235.000) $ (00.000) December 31, 2021 Sales Cost of goods sold Depreciation expense Equity in Eagle's earnings Separate company net income Consolidated net income to noncontrolling interest to Parflex Corporation Retained earnings 1/1 Net income Dividends declared Retained earnings 12/31 Cash and receivables Inventory Investment in Eagle Property & equipment (net) Goodwil $ (500,000) (235.000) 130,000 $ (605,000) 5 135,000 255,000 488,900 984,000 $ (278.000) 190,000) 27.000 $ (341,000) $ 82.000 135,000 0 328 000 5 (500,000) (235,000) 130,000 $ (605,000 $ 135,000 255,000 488.900 984,000 S (278.000) (90,000) 27.000 S (341,000) 5 82.000 138.000 0 328,000 Retained earnings 1/1 Net income Dividends declared Retained earnings 12/31 Cash and receivables Inventory Investment in Eagle Property & equipment (net) Goodw Total assets Liabilities Common stock NCI 1/1 NCI 12/31 Retained earnings 12/31 Total liabilities and equities $ 1.842,900 $ 722.000) (515,000) $ 640.000 $ (65.000) (150.000) 0 (605,000) 5 (1.842,900) (341.000) S (548,000) 0

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