On January 2, 2011, Paleon Packaging purchased 90% of the outstanding common stock of Sampson Shipping and Supplies for $513,000. Sampson book values represented fair values of all recorded assets and liabilities at that date however Sampson had rights to a patent that was not recorded on their books, with an approximate fair value of $ 270,000and a 10-year remaingn useful life. Sampson's shareholders' equity reported on that date consisted of $100,000 in capital stock and $150,000 in retained earnings. Any remaining fair value /book value differential is assumed to be goodwill. The December 31, 2012 financial statements for each of the companies are provided

Elimination entries and consolidated working for the consolidated worksheet