PROBLEM 3.1 Consolidated Workpaper: Two Cases LO 8 LOG 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 II Case / P Company s Company P Company S Company $260,000 $ 880,000 $ 780,000 $280,000 190,000 190,000 400,000 1.400,000 400,000 1,200,000 90,000 40,000 70,000 70,000 $2,560,000 $700,000 $2,240,000 $750,000 $ 640,000 $270,000 $ 700,000 $260,000 850,000 290,000 920,000 270,000 600.000 180,000 600,000 180,000 470,000 (40,000) 20,000 40,000 $2,560,000 $700,000 $2,240,000 $750,000 Current assets Investment in Company Long-term assets Other assets Total Current liabilities Long-term liabilities Common stock Retained earnings Total 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