Poll Corporation paid $16,200 for a 90% interest in Swamp Corporation on January 1, 2017, when Swamp stockholders' equity consisted of $10,000 Capital Stock and $3,000 of Retained Earnings. The excess cost over book value was attributable to goodwill. Assume proportional pricing for the NCI

1. Poll sells merchandise to Swamp at 120% of Poll's cost. During 2017, Poll's sales to Swamp were $4,800, of which half of the merchandise remained in Swamp's inventory at December 31, 2017 (The 2017 ending inventory was sold in 2018.) During 2018, Poll's sales to Swamp were $6,000 of which 60% remained in Swamp's inventory at December 31, 2018. At year-end 2018, Swamp owed Poll $2,500 for the inventory purchased during 2018.

2. Poll Corporation sold equipment with a book value of $2,000 and a remaining useful life of four years and no salvage value to Swamp Corporation on January 1, 2018 for $2,800. Straight-line depreciation is used.

3. During 2018, Swamp sold to Poll land for $50,000 that had a book value of $20,000. Poll still owns the land at 12/31/18.

4. Separate company financial statements for Poll Corporation and Subsidiary at December 31, 2018 are summarized in the first two columns of the consolidation working papers. See Spreadsheet Tab.

5. The following information is available for 2017:

Swamp's income $4,000

Swamp's dividends received by Poll $1,800

1. Prepare the acquisition analysis as of acquisition date. Compute the

unamortized differential as of 1/1/2017.

2. Analyze each intercompany transaction. Label as either upstream

downstream.

3. Calculate Net income to the controlling interest for the year 2018

4. Verify the calculation of the balance in the acccount equity in sub

earnings and record the parent company entries with respect to its investment during 2018

5. Prepare all elimination entries for 2018