PROBLEM 4-10 Consolidated Workpaper, Equity Method Poco Company purchased 80% of Solo Companys common stock on January 1, 2010, for $250,000. On December 31, 2010, the companies prepared the following trial balances: Poco Solo Cash $ 161,500 $125,000 Inventory 210,000 195,000 Investment in Solo Company 402,000 0 Land 75,000 150,000 Cost of Goods Sold 410,000 125,000 Other Expense 100,000 80,000 Dividends Declared 30,000 15,000 Total Debits $1,388,500 $690,000 Accounts Payable $ 154,500 $ 35,000 Common Stock 200,000 150,000 Other Contributed Capital 60,000 35,000 Retained Earnings, 1/1 50,000 60,000 Sales 760,000 410,000 Equity in Subsidiary Income 164,000 0 Total Credits $1,388,500 $690,000 Required: Prepare a consolidated statements workpaper on December 31, 2010. Any difference between book value and the value implied by the purchase price relates to goodwill.