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Plaza Corporation purchased 70 percent of Square Company's voting common stock on January 1,205, for $291,200. On that date, the noncontrolling interest had a fair

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Plaza Corporation purchased 70 percent of Square Company's voting common stock on January 1,205, for $291,200. On that date, the noncontrolling interest had a fair value of $124,800 and the book value of Square's net assets was $380,000. The book values and fair values of Square's assets and llabilities were equal except for land that had a fair value $14,000 higher than book value. The amount attributed to goodwill as a result of the acquisition is not amortized and has not been impaired. On January 1, 20x9. Plaza's inventory contained $38,000 of unrealized intercompany profits recorded by Square. Square's inventory on that date contalned $15,000 of unrealized intercompany profits recorded on Plaza's books. Both companies sold their ending 208 Inventories to unrelated companies in 209. During 20x9, Square sold inventory costing $47,000 to Plaza for $72,000. Plaza held all inventory purchased from Square during 209 on December 31, 20X9. Also during 20X9. Plaza sold goods costing $62,400 to Square for $104,000. Square continues to hold $35,360 of its purchase from Plaza on December 31,209. Assume Plaza uses the fully adjusted equity method. Record the basic consolidation entry. Note: Enter debits before credits. Record the excess value (differential) reclassification entry. Record the entry to reverse last year's deferral. Record the deferral of this year's unrealized profits on inventory transfers. Note: Enter debits before credits. b. Prepare a consolidation worksheet as of December 31, 20X9. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple odjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)

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