On January 1, 20X1, Parent Company purchased 80% of the common stock of Subsidiary Company for $316,000. On this date, Subsidiary had common stock, other paid-in capital, and retained earnings of $40,000, $120,000, and $190,000, respectively. Net income and dividends for 2 years for Subsidiary Company were as follows:

	20X1	20X2
Net income	$50,000	$90,000
Dividends	10,000	20,000

On January 1, 20X1, the only tangible assets of Subsidiary that were undervalued were inventory and building. Inventory, for which FIFO is used, was worth $5,000 more than cost. The inventory was sold in 20X1. Building, which was worth $15,000 more than book value, has a remaining life of 8 years, and straight-line depreciation is used. Any remaining excess is goodwill

Complete the consolidating worksheet for December 31, 20X2. (8 points) Prepare your own worksheet from the following and complete.

	Parent Co.	Sub Co.	Debit		Credit		Consolidated Inc. Stmt	NCI	Controlling Retianed Earnings	12/31/x2 Consolidated Balance sheet
Inventory, December 31	60,000	40,000
Other Current Assets	118,000	180,000
Investment in Sub. Co.
Land	60,000	80,000
Buildings & Equipment	350,000	300,000
Accum. Depreciation	(120,000)	(50,000)
Goodwill
Current Liabilities	(150,000)	(40,000)
Bonds Payable		(50,000)
Other Long Term Liab.	(100,000)
Common Stock - P Co.	(100,000)
Other Pd. In Capital - P Co.	(200,000)
Retained Earnings - P Co.	(200,000)
Common Stock - S Co.		(40,000)
Other Pd. In Capital - S Co.		(120,000)
Retained Earnings - S Co.		(230,000)
Net Sales	(550,000)	(400,000)
Cost of Goods Sold	320,000	210,000
Oerating Expenses	130,000	100,000
Subsidiary Income	(72,000)
Dividend Declared - P Co.	50,000
Dividends Declared - S Co.		20,000
Consolidated Net Income
NCI
Controling Interest
Total NCI
Retained Earnings Contr. Int. 12-31