PROBLEM 3-1 Consolidated Workpaper: Two Cases LO 8 LO9 The two following separate cases show the financial position of a parent company and its subsidiary company on November 30, 2019, just after the parent had purchased 90% of the subsidiary's stock: Case 1 Case II P Company S Company P Company s Company Current assets $ 880,000 $260,000 $ 780,000 $280,000 Investment in Company 190.000 190,000 Long-term assets 1,400,000 400,000 1,200,000 400,000 Other assets 99.000 49.000 20.000 70.000 Total $2.560,000 $700,000 $2,240,000 $750,000 Current liabilities $ 640,000 $270,000 $700,000 $260,000 Long-term liabilities 850,000 290.000 920,000 270,000 Common stock 600,000 180,000 600,000 180,000 Retained earnings 470.000 (40.000) 20.000 40.000 Total $2.560,000 $700,000 $2,240,000 $750,000 Required: A. Prepare a November 30, 2019, consolidated balance sheet workpaper for each of the foregoing cases. In Case I, any difference between book value of equity and the value implied by the purchase price relates to subsidiary long-term assets. In Case II, assume that any excess of book value over the value implied by purchase price is due to overvalued long-term assets. B. Assume that Company S's balance sheet is the same as the balance sheet used in Case I (from part A). Suppose that there were 50,000 shares of Company common stock outstanding and that company Pacquired 90% of the shares for $4.50 a share. Shortly after acquisition, the noncontrolling shares were selling for $4.25 a share. Prepare a computation and allocation of difference schedule considering this information