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Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $114,800. At that date, the noncontrolling interest had a

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Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $114,800. At that date, the noncontrolling interest had a fair value of $49,200 and Soda reported $70,000 of common stock outstanding and retained earnings of $25,000. The differential is assigned to buildings and equipment, which had a fair value $22,000 higher than book value and a remaining 10-year life,, and to patents, which had a fair value $47,000 higher than book value and a remaining life of five years at the date of the business combination. Trial balances for the companies as of December 31, 20x3, are as follows: Pop Corporation Debit Soda Company Debit Item Credit Credit Cash & Accounts Receivable $ 17,400 23,600 Inventory Land Buildings & Equipment Investment in Soda Company Cost of Goods 167,000 82,000 37,000 42,000 360,000 262,000 117,100 188,000 81,800 Sold Depreciation Expense Interest Expense Dividends Declared Accumulated 25,000 20,000 18,000 7,200 32,000 17,000 142,000 90,000 Depreciation Accounts Payable Bonds Payable Bond Premi um Common Stock Retained 94,400 234,180 37,000 90,000 1,600 70,000 122,000 129,900 Earnings Sales Other Income Income from Soda Company 62,000 262,000 11,600 140,000 10,420 $1,006,500 $1,006,500 $490,600 $490,600 On December 31, 20x2, Soda purchased inventory for $30,000 and sold it to Pop for $50,000. Pop resold $29,000 of the inventory (i.e., $29,000 of the $50,000 acquired from Soda) during 20X3 and had the remaining balance in inventory at December 31, 20x3. During 20X3, Soda sold inventory purchased for $54,000 to Pop for $90,000, and Pop resold all but $26,000 of its purchase. On March 10, 20x3, Pop sold inventory purchased for $16,000 to Soda for $32,000. Soda sold all but $8,000 of the inventory prior to December 31, 20x3. Assume Pop uses the fully adjusted equity method, that both companies use straight-line depreciation, and that no property, plant, and equipment has been purchased since the acquisition. Required: a. Prepare all consolidation entries needed to prepare a full set of consolidated financial statements at December 31, 20X3, for Pop and Soda. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) use stralght-lne depreciation, and that no property, plant, and equipment has been purchased since the acquisition. Required: a. Prepare all consolidation entries needed to prepare a full set of consolidated financial statements at December 31, 20X3, for Pop and Soda. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries ce c DEF G

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