Pinkett acquired 100% of Smith at book value. End of year financial statements of each company are presented below: Consolidation Entries DR CR Pinkett, Inc Smith, Inc. Consolidated Income Statement Sales Less: COGS Less: Depreciation Expense Less: Other Expenses Income from Smith, Inc. Net Income 840,000 (516,000) (12,000) (192,000) 36,000 156,000 300,000 (156,000) (10,000) (98,000) 36,000 Statement of Retained Earnings Beginning Balance Net Income Less: Dividends Declared Ending Balance 132,000 156,000 (108,000) 180,000 72,000 36,000 (12,000) 96,000 48,000 66,000 90,000 Balance Sheet Cash Accounts Receivable Inventory Investment in Smith, Inc. Property, Plant, & Equipment Less: Accumulated Depreciation Total Assets 54,000 114,000 204,000 156,000 336,000 (144,000) 720,000 210,000 (30,000) 384,000 Accounts Payable Long-term Debt Common Stock Retained Earnings Total Liabilities & Equity 168,000 360,000 12,000 180,000 720,000 84,000 144,000 60,000 96,000 384,000 1. Assume Pinkett acquired Smith on 1/1/11. Prepare all elimination entries as of 12/31/11. 2. Use the template above, prepare a consolidation worksheet at 12/31/11. (Assume Smith's accumulated depreciation on 1/1/11 was $20,000.)