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 Company $262,300 S Company $279,100 Current assets Investment in 5 Company Long-term assets Other assets P Company $ 879,000 190,700 1,413,600 89,700 $2,573,000 P Company $ 778,000 190,700 1,208,300 70,700 400,300 40,200 $702,800 400,300 69,500 $748,900 Total 52.247,700 Current liabilities Long-term liabilities Common stock Retained earnings Total $ 646,400 842,100 605.200 479,300 $2,573,000 $272,300 292,300 181,800 (43,600) $702,800 $ 694,400 917,200 605,200 30,900 $2,247,700 $260,900 271,200 181,800 35,000 $748.900 Your answer is correct Case 1: Prepare a November 10, 2014, consete balance sheet worker Any Ference between book relates to subsidiary long-term (Round answers to decimal places 125.) of euty and the w e d by the chase price ( 2) 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 o decimal places, e.g. 125.) P COMPANY AND SUBSIDIARY Consolidated Balance Sheet Workpaper November 30, 2014 Eliminations Company Company $778,000 $279,100 Noncontrolling Interest Consolidated Balance Case II Dr. Current Assets Investment in s Company 190,700 Difference between Implied and Book Value Long-term Assets 1,208,300 400,300 Other Assets 70,700 69,500 Total Assets 2,247,700 748,900 Current Liabilities 694,400 260,900 917,200 271,200 Long-term Liabilities Common Stock P Company 605,200 CALCULATOR PRINTER VERSION BACK CES Long-term Assets 1,208,300 400,300 Other Assets 70,700 69,500 Total Assets 2,247,700 748,900 Current Liabilities 694,400 260,900 Long-term Liabilities 917,200 271,200 Common Stock: P Company 605,200 s Company 181,800 Retained Earnings P Company 30,900 S Company 35,000 Noncontrolling Interest Total Liabilities and Equity $2,247,700 $748,900 Attempts: 0 of 4 used SAVE FOR LATER SUBMIT ANSWER 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 Company $262,300 S Company $279,100 Current assets Investment in 5 Company Long-term assets Other assets P Company $ 879,000 190,700 1,413,600 89,700 $2,573,000 P Company $ 778,000 190,700 1,208,300 70,700 400,300 40,200 $702,800 400,300 69,500 $748,900 Total 52.247,700 Current liabilities Long-term liabilities Common stock Retained earnings Total $ 646,400 842,100 605.200 479,300 $2,573,000 $272,300 292,300 181,800 (43,600) $702,800 $ 694,400 917,200 605,200 30,900 $2,247,700 $260,900 271,200 181,800 35,000 $748.900 Your answer is correct Case 1: Prepare a November 10, 2014, consete balance sheet worker Any Ference between book relates to subsidiary long-term (Round answers to decimal places 125.) of euty and the w e d by the chase price ( 2) 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 o decimal places, e.g. 125.) P COMPANY AND SUBSIDIARY Consolidated Balance Sheet Workpaper November 30, 2014 Eliminations Company Company $778,000 $279,100 Noncontrolling Interest Consolidated Balance Case II Dr. Current Assets Investment in s Company 190,700 Difference between Implied and Book Value Long-term Assets 1,208,300 400,300 Other Assets 70,700 69,500 Total Assets 2,247,700 748,900 Current Liabilities 694,400 260,900 917,200 271,200 Long-term Liabilities Common Stock P Company 605,200 CALCULATOR PRINTER VERSION BACK CES Long-term Assets 1,208,300 400,300 Other Assets 70,700 69,500 Total Assets 2,247,700 748,900 Current Liabilities 694,400 260,900 Long-term Liabilities 917,200 271,200 Common Stock: P Company 605,200 s Company 181,800 Retained Earnings P Company 30,900 S Company 35,000 Noncontrolling Interest Total Liabilities and Equity $2,247,700 $748,900 Attempts: 0 of 4 used