On January 1, 2019, Petunia Company purchased an 85% interest in the capital stock of Sunflower Company for $3,400 (Cash + Shares of Petunia Company). Petunia Company uses the equity method to record its investment in Sunflower Company. The plant is undervalued by 700 (7 year remaining life) and the equipment is overvalued by 200 (10 year remaining life) on January 1, 2019. Balance sheet for the Petunia and Sunflower at acquisition are included on the December 31, 2019 Consolidation worksheets on the last pages. Required: Answer all questions in the spaces provided below. (1 point). What is the total fair value of Sunflower at acquisition? (1 point). What is the goodwill of Sunflower at acquisition? (1 point). What is the amount of non-controlling Interest reported at acquisition on the January 1, 2019 balance sheet? (1 point). Prepare the working paper entry to eliminate any income earned from Sunflower Corporation during 2019 (look to worksheet for amounts). Account Title DR CR (1 points). Prepare the working paper entry to eliminate Petunias investment in Sunflower at December 31, 2019. (1 point). What is the common stock of the consolidated company at December 31, 2019? (1 point). What is the retained earnings of the consolidated company at December 31, 2019? (1 point). What is the dividend declared of the consolidated company for the year ended December 31, 2019? (1 point). What is the net income attributable to the controlling interest for the year ended December 31, 2019? (1 point). What is the net income attributable to the non-controlling interest for the year ended December 31, 2019? (1 point). What is the amount of non-controlling interest for the year ended December 31, 2019?

Eliminations Noncontrolling Consolidated Petunia Sunflower Company Company Dr. Cr. Interest Balances Balance Sheet Cash Accounts Receivable Inventory 290 1,040 960 260 760 700 3,706 Investment in Sunflower Company Land Plant and Equipment Goodwill 1,280 1,120 1,430 Total Assets Accounts Payable Notes Payable Common Stock Retained Earnings from above 1/1 Noncontrolling Interest 7,426 (528) (360) (4,000) (2,538) 4,120 (440) (120) (2,200) (1,360) 12/31 Noncontrolling Interest Total Liabilities & Equity (7,426) (4,120) Consolidated Balances Consolidated statements workpaper for Petunia Corporation and Subsidiary for December 31, 2019. PETUNIA COMPANY AND SUBSIDIARY Consolidated Statements Workpaper For the Year Ended December 31, 2019 Petunia Sunflower Eliminations Noncontrolling Company Company Dr. Cr. Interest Income Statement Sales (4,400) (1,786) Equity in Subsidiary Earnings (498) Total Revenue (4,898) (1,786) Cost of Goods Sold 3,600 800 Depreciation Expense 160 120 Other Expenses 240 200 Total Cost & Expenses 4,000 1,120 Separate/Consolidated Income (898) (666) Noncontrolling Interest in Income Net Income to Controlling interest 898 666 Retained Earnings Statement 1/1 Retained Earnings (2.000) (920) Net Income from above (898) (666) Dividends Declared 360 226 12/31 Retained Earnings to Balance (2,538) (1,360) Eliminations Noncontrolling Consolidated Petunia Sunflower Company Company Dr. Cr. Interest Balances Balance Sheet Cash Accounts Receivable Inventory 290 1,040 960 260 760 700 3,706 Investment in Sunflower Company Land Plant and Equipment Goodwill 1,280 1,120 1,430 Total Assets Accounts Payable Notes Payable Common Stock Retained Earnings from above 1/1 Noncontrolling Interest 7,426 (528) (360) (4,000) (2,538) 4,120 (440) (120) (2,200) (1,360) 12/31 Noncontrolling Interest Total Liabilities & Equity (7,426) (4,120) Consolidated Balances Consolidated statements workpaper for Petunia Corporation and Subsidiary for December 31, 2019. PETUNIA COMPANY AND SUBSIDIARY Consolidated Statements Workpaper For the Year Ended December 31, 2019 Petunia Sunflower Eliminations Noncontrolling Company Company Dr. Cr. Interest Income Statement Sales (4,400) (1,786) Equity in Subsidiary Earnings (498) Total Revenue (4,898) (1,786) Cost of Goods Sold 3,600 800 Depreciation Expense 160 120 Other Expenses 240 200 Total Cost & Expenses 4,000 1,120 Separate/Consolidated Income (898) (666) Noncontrolling Interest in Income Net Income to Controlling interest 898 666 Retained Earnings Statement 1/1 Retained Earnings (2.000) (920) Net Income from above (898) (666) Dividends Declared 360 226 12/31 Retained Earnings to Balance (2,538) (1,360)