Problem 3-1 The two following separate cases show the financial position of a parent company and its subsidiary company on November 30, 2014, just after the parent had purchased 90% of the subsidiary's stock: Case 1 Case IT P Company s Company P Company S Company Current assets $ 885,900 $258,700 $ 783,500 $278,500 Investment in s Company 188,400 188,400 Long-term assets 1,394,300 401,500 1,200,800 401,500 Other assets 89,900 39,900 70,500 69,300 Total $2,558,500 $700,100 $2,243,200 $749,300 Current liabilities Long-term liabilities Common stock Retained earnings Total $ 634,800 856,100 598,600 469,000 $2,558,500 $268,000 291,700 181,300 (40,900 $700,100 $ 703,400 928,400 598,600 12,800 $2,243,200 $259,600 270,500 181,300 37,900 $749,300 (al) Case I: Prepare a November 30, 2014, consolidated balance sheet workpaper. Any difference between book value of equity and the value implied by the purchase price relates to subsidiary long-term assets. (Round answers to 0 decimal places, e.g. 125.) P COMPANY AND SUBSIDIARY Consolidated Balance Sheet Workpaper November 30, 2014 Eliminations Dr. Cr. Company $885,900 S Company Noncontrolling Interest Consolidated Balance Case I Current Assets $258,700 $ $ $ 1,144,600 188,400 188,700 Investment in S Company Difference between Implied and Book Value Long-term Assets 1,394,300 401,500 Other Assets 89,900 39,900 129800 Total Assets 2,558,500 700,100 Current Liabilities 634,800 268,000 902800 856,100 291,700 1147800 Long-term Liabilities Common Stock: P Company 598,600 598600 181,300 181300 S Company Retained Earnings P Company S Company 469,000 469000 (40,900 ) 40900 Noncontrolling Interest Total Liabilities and Equity $2,558,500 $700,100