P Corporation acquired 80% of S Corporation on January 1, 2014 for $240,000 cash when S?s stockholders? equity consisted of $100,000 of Common Stock and $30,000 of Retained Earnings. The difference between the price paid by P and the underlying equity acquired in S was allocated solely to a patent amortized over 10 years. P sold merchandise to S during the year in the amount of $30,000. $10,000 worth of inventory is still on hand at the end of the year with an unrealized profit of $4,000. The separate company statements for P and S appear in the first two columns of the partially completed consolidated workpaper. Required: Complete the consolidated workpaper for P and S for the year 2014. P Corporation and Subsidiary Consolidated Statements Workpaper P S Eliminations Noncontrolling Interest Consolidated Balances Corp. Corp. Dr. Cr. Income Statement Sales 200,000 150,000 Dividend Income 16,000 Cost of Sales -92,000 -47,000 Other Expenses -23,000 -40,000 Noncontrolling Interest in Income Net Income 101,000 63,000 Retained Earnings Statement Retained Earnings 1/1 110,000 30,000 Add:Net Income 101,000 63,000 Less:Dividends -30,000 -20,000 Retained Earnings 12/31 181,000 73,000 Balance Sheet Cash 20,000 19,000 Accounts Receivable-net 120,000 55,000 Inventories 140,000 80,000 Patent Land 270,000 420,000 Equipment and Buildings-net 600,000 430,000 Investment in S Corporation 240,000 Total Assets 1,390,000 1,004,000 Equities Accounts Payable 909,000 831,000 Common Stock 300,000 100,000 Retained Earnings 181,000 73,000 1/1 Noncontrolling Interest in Net Assets 12/31 Noncontrolling Interest in Net Assets Total Equities 1,390,000 1,004,000

P Corporation acquired 80% of S Corporation on January 1, 2014 for $240,000 cash when S's stockholders' equi P sold merchandise to S during the year in the amount of $30,000. $10,000 worth of inventory is still on hand at Required: Complete the consolidated workpaper for P and S for the year 2014. P Corporation and Subsidiary Consolidated Statements Workpaper P Corp. Income Statement Sales Dividend Income Cost of Sales Other Expenses Noncontrolling Interest in Income Net Income Retained Earnings Statement Retained Earnings 1/1 Add: Net Income Less: Dividends Retained Earnings 12/31 S Corp. 200,000 16,000 -92,000 -23,000 150,000 101,000 63,000 110,000 101,000 -30,000 181,000 30,000 63,000 -20,000 73,000 Balance Sheet Cash 20,000 Accounts Receivable-net 120,000 Inventories 140,000 Patent Land 270,000 Equipment and Buildings-net 600,000 Investment in S Corporation 240,000 Total Assets 1,390,000 Equities Accounts Payable 909,000 Common Stock 300,000 Retained Earnings 181,000 1/1 Noncontrolling Interest in Net Assets 12/31 Noncontrolling Interest in Net Assets Total Equities 1,390,000 -47,000 -40,000 19,000 55,000 80,000 420,000 430,000 1,004,000 831,000 100,000 73,000 1,004,000 00 cash when S's stockholders' equity consisted of $100,000 of Common Stock and $30,000 of Retained Earnings. The difference between worth of inventory is still on hand at the end of the year with an unrealized profit of $4,000. The separate company statements for P and S a Corporation and Subsidiary olidated Statements Workpaper Eliminations Dr. Cr. Noncontrolling InterestConsolidated Balances rnings. The difference between the price paid by P and the underlying equity acquired in S was allocated solely to a patent amortized over 1 mpany statements for P and S appear in the first two columns of the partially completed consolidated workpaper. ly to a patent amortized over 10 years