PROBLEM 31 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 I			Case II
	P Company	S Company	P Company	S Company
Current assets	$ 880,000	$260,000	$ 780,000	$280,000
Investment in S Company	190,000		190,000
Longterm assets	1,400,000	400,000	1,200,000	400,000
Other assets	90,000	40,000	70,000	70,000
Total	$2,560,000	$700,000	$2,240,000	$750,000
Current liabilities	$ 640,000	$270,000	$ 700,000	$260,000
Longterm 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:

1. 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 longterm assets. In Case II, assume that any excess of book value over the value implied by purchase price is due to overvalued longterm assets.