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: Current assets Investment in S Company Long-term assets Other assets Total Case I P Company S Company $ 885,900 $258,700 188,400 1,394,300 401,500 89,900 39,900 $2,558,500 $700,100 Case II P Company S Company $ 783,500 $278,500 188,400 1,200,800 401,500 70,500 69,300 $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 Case II: Prepare a November 30, 2014, consolidated balance sheet workpaper. Assume that any excess of book value over the value implied by purchase price is due to overvalued 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. P s Noncontrolling Interest Consolidated Balance Case II Company Company Current Assets $783,500 $278,500 1062000 Investment in S Company 188,400 188400 Difference between Implied and Book Value 68933 68933 Long-term Assets 1,200,800 401,500 68933 Other Assets 70,500 69,300 Total Assets 2,243,200 749,300 Current Liabilities 703,400 259,600 Long-term Liabilities 928,400 270,500 Common Stock: P Company 598,600 S Company 181,300 Retained Earnings p Company 12,800 S Company 37,900 x Noncontrolling Interest Total Liabilities and Equity $2,243,200 $749,300