On January 1, 20X9, Zigma Company acquired 90 percent of Standard Company's common shares at the underlying book value. Zigma paid $76,500 for the 90% ownership. Zigma uses the equity method in accounting for its ownership of Standard. On December 31, 20X9, the financials of the two companies are attached as part of the Consolidated Worksheet. During the year, Standard sold to Zigma land for $50K. Standard had purchased the land for $20K. Zigma still held the land at the end of of 20X10. In 20X11, Zigma sold the land for $80K.

1. Prepare all the eliminating entries needed as of December 31, 20X9, 20X10 and 20X11 and complete the consolidated worksheet. (Hint: I suggest that you reconcile the Investment in Standard and Income from Standard accounts by determining the equity entries that were made during the year).

December 31, 20X9			Eliminations
	Zigma	Standard	Debit	Credit	Consolidated
Income Statement
Sales	227,000	107,000
Gain on Land Sale		30,000
Other Expenses	(90,000)	(70,000)
Depreciation	(30,000)	(17,000)
Income from Standard	18,000
Net Income	125,000	50,000
NCI Net Income
CI Net Income	125,000	50,000

Statement of Retained Earnings
Beginning RE	175,000	35,000
Net Income	125,000	50,000
Less Dividends Declared	(32,000)	(10,000)
Ending Retained Earnings	268,000	75,000
Balance Sheet
Current Assets	222,500	120,000
Depreicable Assets	300,000	170,000
Accumulated Depreciation	(120,000)	(85,000)
Land	50,000
Investment in Standard	85,500
Total Assets	538,000	205,000
Current Liabilities	50,000	30,000
Long Term Liabilities	120,000	50,000
Common Stock	100,000	50,000
Retained Earnings	268,000	75,000
NCI Share of Assets	-	-
Total Liabilities and Equity	538,000	205,000