Part B

Exercise 4-5 in excess of the book al e on January 1, 2014, Plate Company purchased a 90% interest in the common stock of Set Company for $681 00 an amount SA 50 equity acquired. The excess relates to the understatement of Set Company's land holdings. Excerpts from the consolidated retained earnings section of the consolidated statements workpaper for the year ended December 31, 2014, follow: Set Company Consolidated Balances 1/1/14 retained earnings Net income from above Dividends declared 12/31/14 retained earnings to the balance sheet 177,300 133,600 (50,600) 260,300 953,400 393,400 (81,200 ) 1,265,600 Set Company's stockholders' equity is composed of common stock and retained earnings only