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Picky Corporation paid $350,000 for an 70% interest in Sticky Corporation on January 1, 20X6 when the stockholders' equity of Sticky consisted of $200,000 capital

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Picky Corporation paid $350,000 for an 70% interest in Sticky Corporation on January 1, 20X6 when the stockholders' equity of Sticky consisted of $200,000 capital stock and $140,000 retained earnings. The following assets of Sticky had fair values different from their book values when Picky acquired its interest: Book Value Fair Value Inventories (sold in 20X6) $ 50,000 $ 32,000 Equipment (5-year life at the time of combination) 600,000 680,000 Bonds Payable (matures on Dec 31, 20X9) (500,000) (532,000) Additional information: Sticky's accounts payable at December 31, 20X8 included $15,000 owed to Picky. Picky and Sticky's financial statements for the year ended 12/31/20X8 are provided below: Picky Sticky (In 000's) (In 000's) Income Statement Sales $882.0 $300.0 Income from Sticky 29.4 Cost of sales 600.0) 150.0) Operating expenses 150.0) (75.0) Interest expense (30.0) (25.0) Net Income $131.4 $50.0 Retained Earnings Retained earnings 1/1/X8 $105.0 $160.0 Net income 131.4 50.0 Dividends (100.0) (20.0) Retained earnings-12/31/X8 $136.4 $190.0 Balance Sheet Cash $166.6 $15.0 Accounts receivable 72.0 20.0 Inventones 100.0 60.0 Loan receivable from Sticky 50.0 Land 160.0 85.0 Equipment-net 240.0 730.0 Dividends receivable 7.0 Investment in Sticky 380.8 Totals $1,176.4 $910.0 Accounts payable $100.0 $60.0 Dividends payable 70.0 10.0 Bonds payable 170.0 400.0 Loan payable to Picky 50.0 Capital stock 700.0 200.0 Retained earnings 136.4 190.0 Totals $1,176.4 $910.0Amortization Schedule Unamortized Unamortized Unamortized Differences Amortization Amortization Differences Amortization Differences Account 1/1/20X6 20X6 20X7 12/31/20X7 20X8 12/31/20X8 Totals Sub BV 1/1/X8 XXXXXXXXX XXXXXXXXX XXXXXXXX Sub NI 20X8 XXxxxxxx XXXXxxxx XXxxxxxx Sub BV 12/31/XB 0XXXX OOOXXXX 0XXXX Sub's Adj NI & FV XXxxxxx XXXXXXXX XXXXXXXX Controlling Int Share XXxxxxxx XXxxxxxx XXxxxxxx NCI Share XXXXxxxx XXxxxxxx XXXXxxxx

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