.On January 1, 20X1, Prange Company acquired 100% of the common stock of Seaman Company for $600,000. On this date Seaman had total owners' equity of $400,000. Any excess of cost over book value is attributable to a patent, which is to be amortized over 10 years.

During 20X1 and 20X2, Prange has appropriately accounted for its investment in Seaman using the simple equity method.

On January 1, 20X2, Prange held merchandise acquired from Seaman for $30,000. During 20X2, Seaman sold merchandise to Prange for $100,000, of which $20,000 is held by Prange on December 31, 20X2. Seaman's gross profit on all sales is 40%.

On December 31, 20X2, Prange still owes Seaman $20,000 for merchandise acquired in December.

Required:

Complete the Figure 4-1 worksheet for consolidated financial statements for the year ended December 31, 20X2.

Figure 4-1
	Trial Balance	Eliminations and
	Prange	Seaman	Adjustments
Account Titles	Company	Company	Debit	Credit
Inventory, December 31	100,000	105,000
Other Current Assets	207,000	325,000
Investment in Sub. Company	710,000
Land	140,000	80,000
Buildings and Equipment	315,000	340,000
Accumulated Depreciation	(220,000)	(130,000)
Patent	20,000
Current Liabilities	(150,000)	(70,000)
Bonds Payable		(100,000)
Other Long-Term Liabilities	(200,000)	(40,000)
Common StockP Co.	(200,000)
Other Paid in CapitalP Co.	(100,000)
Retained EarningsP Co.	(492,000)
Common StockS Co.		(150,000)
Other Paid in CapitalS Co.		(100,000)
Retained EarningsS Co.		(200,000)
Net Sales	(600,000)	(380,000)
Cost of Goods Sold	360,000	228,000
Operating Expenses	140,000	62,000
Subsidiary Income	(90,000)
Dividends DeclaredP Co.	60,000
Dividends DeclaredS Co.		30,000
Consolidated Net Income
NCI
Controlling Interest
Total NCI
Ret. Earn. Contr. Int. 12-31
	0	0
(continued)

	Consol.		Control.	Consol.
	Income		Retained	Balance
Account Titles	Statement	NCI	Earnings	Sheet
Inventory, December 31
Other Current Assets
Investment in Sub. Company
Land
Buildings and Equipment
Accumulated Depreciation
Patent
Current Liabilities
Bonds Payable
Other Long-Term Liabilities
Common StockP Co.
Other Paid in CapitalP Co.
Retained EarningsP Co.
Common StockS Co.
Other Paid in CapitalS Co.
Retained EarningsS Co.
Net Sales
Cost of Goods Sold
Operating Expenses
Subsidiary Income
Dividends DeclaredP Co.
Dividends DeclaredS Co.
Consolidated Net Income
NCI
Controlling Interest
Total NCI
Ret. Earn. Contr. Int. 12-31