Pineapple Company acquired an 80% interest in Samsung Company for $272,000 cash on January 1, 2018. Samsung had the following Balance Sheet on the date of acquisition:

Samsung Company Balance Sheet January 1, 2018

Assets ($)	Liabilities ($)
Accounts Receivable 90,000	Accounts Payable 50,000
Depreciation Fixed Assets 200,000	Bonds Payable 50,000
Land 50,000	Discount on Bonds Payable (1620)
Goodwill 10,000	Common Stock (10 par) 100,000
	Retained Earning 151,620
Totals 350,000	Totals 350,000

1. The excess of the price paid over book value is attributable to the Depreciable Fixed Assets, which have a fair value of $260,000. The Depreciable Assets have a 10 year remaining life.

2. Samsung sold a piece of Land to Pineapple for $60,000 on January 1, 2019. It cost Samsung $50,000 to purchase the land.

3. On January 1, 2020, Samsung held merchandise acquired from Pineapple for $20,000. This beginning inventory had an applicable gross profit of 40%. During 2020, Pineapple sold $60,000 worth of merchandise to Samsung. Samsung held $30,000 of this merchandise at December 31, 2020. This ending inventory and an applicable gross profit of 35%. Samsung owed Pineapple $23,000 on December 31, 2020 as a result of these intercompany sales.

4. On January 1, 2020, Pineapple held merchandise acquired from Samsung for $10,000. This beginning inventory had an applicable gross profit of 25%. During 2020, Samsung sold $40,000 worth of merchandise to Pineapple. Pineapple held $6,000 of this merchandise at December 31, 2020. This ending inventory had an applicable gross profit of 30%. Pineapple owed Samsung $11,000 on December 31, 2020 as a result of these intercompany sales.

5. On January 1, 2017, Samsung received $48,055 for $50,000 of 8%, 5 year bonds it issued when the market rate was 9%. When Pineapple purchased these bonds for $47,513 on January 1, 2019, the market rate was 10%. Both companies use the Effective Interest method to amortize the premium/discount on the bonds.

Pineapple and Samsung used the following bond amortization schedules:

Samsung Pineapple

Period	Nominal Interest	Effective Interest	Balance	Period	Nominal Interest	Effective Interest	Balance
Jan,1 2017			48,055	Jan,1 2017
Jan,1 2018	4,000	4,345	48,380	Jan,1 2018
Jan,1 2019	4,000	4,354	48,743	Jan,1 2019			47,513
Jan,1 2020	4,000	4,386	49,120	Jan,1 2020	4,000	4,751	48,264
Jan,1 2021	4,000	4,421	49,541	Jan,1 2021	4,000	4,826	49,090
Jan,1 2022	4,000	4,421	50,000	Jan,1 2022	4,000	4,909	50,000

Pineapple and Samsung had the following trial balances on December 31, 2020:

Balance	Pineapple	Samsung
Accounts receivable	125,000	85,000
Inventory	6,000	30,000
Depreciation fixed assets	400,000	200,000
Accumulated depreciation	(130,000)	(40,000)
Land	60,000
Investment Subsidiary	272,000
Investment Subsidiary Bonds	49,090
Good will		10,000
Accounts Payable	(80,000)
Bonds Payable		(50,000)
Discount on Bonds Payable		459
Common Stock	(300,000)	(100,000)
Retained Earning Jan 1	(348,264)	(134,880)
Sales	(200,000)	(100,000
Expense	160,000	85,000
Interest Revenue	(4826)
Interest Expense		4,421
Dividends Income (from Subsidiary)	(8,000)
Dividends Declared		10,000
Totals	0	0

1. Prepare the following:

a. Worksheet for Consolidated Financial Statements for the year ended December 31, 2020

b. Subsidiary Balance on Acquisition Date

c. Value Analysis Schedule

d. Determination and Distribution of Excess Schedule

e. Amortization Schedule

f. Intercompany Fixed Assets Profit Deferral Schedule

g. Intercompany Profit Deferral Schedule

h. Cost Equity Conversion

i. Proof for Bond elimination schedule

j. Income Distribution Schedule

k. Elimination & Adjustments