Problem 4-3

Perkins Company acquired 100% of Schultz Company on January 1, 2012, for $163,600. On December 31, 2012, the companies prepared the following trial balances:

		Perkins		Schultz
Cash		$24,800		$29,900
Inventory		102,100		100,300
Investment in Schultz Company		228,300		0
Land		111,200		100,500
Cost of Goods Sold		231,500		60,400
Other Expense		42,000		39,900
Dividends Declared		15,200		10,500
Total Debits		$755,100		$341,500
Accounts Payable		$72,400		$17,300
Common Stock		155,900		78,500
Other Contributed Capital		35,800		17,300
Retained Earnings, 1/1		24,300		52,900
Sales		391,500		175,500
Equity in Subsidiary Income		75,200		0
Total Credits		$755,100		$341,500

(b) Prepare a workpaper for the preparation of consolidated financial statements on December 31, 2012. Any difference between the book value of equity acquired and the value implied by the purchase price relates to goodwill.