Pawl Corporation acquired 90% of Snab Corporation on January 1, 2014 for $72,000 cash when Snab's stockholders' equity consisted of $30,000 of Capital Stock and $30,000 of Retained Earnings. The difference between the fair value of Pawl's assets and liabilities and the book value was allocated to a plant asset with a remaining 10-year straight-line life that was overvalued on the books by $5,000. The remainder was attributable to goodwill. The separate company statements for Pawl and Snab appear in the first two columns of the partially completed consolidation working papers.

1. Record all the necessary worksheet entries.

Consol- idated Pawi Eliminations Debit Credit Snab INCOME STATEMENT Sales $ 60,000 $ 22,000 Income of Snab 3,510 (13,000) 9,500 2,000) 3,000) Cost of Sales Depreciation Expense Other Expenses Noncontrolling Interest Share (23,000) 6,100) $ 25,510 $ 3,400 $ 25,000 $30,000 25,510 3,400 Net income Retained Earnings 1/1 Add: Net income Less: Dividends Retained Earnings 12/31 BALANCE SHEET Cash Accounts Receivable-net ( 15,000) 3,000) 35, 510 $30, 400 S 26, 520 $ 7,000 22,000 10,000 Inventories 20,000 14,000 27,000 42,000 Land Equipment and Buildings-net Investment in Snab Corporation Goodwill 70,000 38,000 72,810 TOTAL ASSETS $ 238, 330 $111,000 LIAB. & EQUITY Accounts payables 32,820 $50, 600 Capital Stock 170,000 30,000 Retained Earnings 35,510 30,400 Noncontrolling Interest TOTAL LIAB. & EQUITY 238, 330 $ 111,000 Consol- idated Pawi Eliminations Debit Credit Snab INCOME STATEMENT Sales $ 60,000 $ 22,000 Income of Snab 3,510 (13,000) 9,500 2,000) 3,000) Cost of Sales Depreciation Expense Other Expenses Noncontrolling Interest Share (23,000) 6,100) $ 25,510 $ 3,400 $ 25,000 $30,000 25,510 3,400 Net income Retained Earnings 1/1 Add: Net income Less: Dividends Retained Earnings 12/31 BALANCE SHEET Cash Accounts Receivable-net ( 15,000) 3,000) 35, 510 $30, 400 S 26, 520 $ 7,000 22,000 10,000 Inventories 20,000 14,000 27,000 42,000 Land Equipment and Buildings-net Investment in Snab Corporation Goodwill 70,000 38,000 72,810 TOTAL ASSETS $ 238, 330 $111,000 LIAB. & EQUITY Accounts payables 32,820 $50, 600 Capital Stock 170,000 30,000 Retained Earnings 35,510 30,400 Noncontrolling Interest TOTAL LIAB. & EQUITY 238, 330 $ 111,000