Pan Corporation acquired 90% of San Corporation on January 1, 2018, for $72,000 cash when San's stockholders' equity consisted of $30,000 of Common Stock and $30,000 of Retained Earnings. The difference between the price paid by Pan and the underlying equity acquired in San was allocated to a plant asset with a remaining 10-year straight-line life that was overvalued by S5,000. The remainder was attributable to goodwill . The separate company statements for Pan and San appear in the first two columns of the partially completed consolidation working papers. Complete the consolidation working papers for Pan and San for the year 2018 and show all the calculations Eliminations Consolidated Pan San Debit Credit INCOME STATEMENT: Sales 60,000 $22,000 Income from San Cost of Sales Depreciation Expense Other Expenses (13,000) (2.000) (23,000) (9,500) (3.000) (6,100) 25,510 3,400 25,000 30,000 Net income Retained Earnings 1/1 Add: Net income Less: Dividends Retained Earnings 12/31 25,510 3,400 (15,000) 3,000) $30,400 35,510 BALANCE SHEET Cash 26,520 7,000 Accounts Receivable-net 22,000 10,000 Inventories 20,000 14,000 Land 27,000 42,000 70,000 Equipment and Build-net Investment in San Corp 38,000 Retained Earnings 1/1 25,000 30,000 Add: Net income 25,510 3,400 Less: Dividends (15,000) ( 3,000) $30,400 Retained Earnings 12/31 35,510 26,520 7.000 BALANCE SHEET Cash Accounts Receivable-net Inventories 22.000 10,000 20,000 14,000 Land 27,000 42,000 Equipment and Build-net Investment in San Corp 70,000 38,000 238,330 $111,000 TOTAL ASSETS LIAB. & EQUITY: Accounts payable Capital Stock Retained Earnings 32,820 50,600 170,000 30,000 35,510 30,400 TOTAL LAB. & EQUITY 238,330 $111.000 7 i B 1 T - !!!! HII MacBook Pro