Pacific Corp South Corp

Current assets

$$225,000$

$$165,000$

Noncurrent assets $125,00085,000$

Total assets $350,000250,000$

Current liabilitie$110,00085,000$

Noncurrent liabilities$135,00065,000$

Equity $105,000100,000$

Total liabilities and equity $350,000250,000$

Pacific Corp South Corp

Sales $250,000150,000$

COGS $(100,000)50,000$

Selling and administrative expense $50,00025,000$

Income before tax$100,00075,000$

Incom tax $30,00022,500$

Net income $70,00052,500$

In january pacific sells shares for $125,000$ for when to buy $80\%$ of south's outstanding shares at the time of the purchase of inventory of undervalued by $8,000$ PPE for $12,000.$Assume NCI $30,000.$Assume no depreciation, no dividend, Pacific $15,000$ common stock $70,000$ APIC and $30,000$ Retained earnings before the purchase. Prepare consolidated financial statements : Balance sheet $,$ Net income and Changes in equity for Pacific and South Coportions.