PROBLEM 4-5 Consolidated Workpaper, Partiay Owned SubsidiarySubsequent Years On January 1, 1990', Plank Company purchased 30% of the outstanding capital stock of Scoba Company for $53,000. At that time, Scoba's stockholders' equity consisted of capital stock, $55,000; other contributed capital, $5,000; and retained earnings, $4,000. On December 31, 2003, the two companies' trial balances were as follows: Plank 5005:: Cash 5 42,000 5 22,000 Accounts Receivable 21,000 17,000 Inventory 15,000 3,000 Investment in Scoba Company 01,000 land 52,000 43,000 Dividends Declared 10,000 3,000 Cost of Goods Sold 35,400 20,000 Other Expense 10,000 12,000 $200,400 $135,000 Plank 3005:: Accounts Payable 3 12,000 5 0,000 Other liabilities 5,000 4,000 Capital Stock 100,000 55,000 Other Contributed Capital 20,000 5,000 Retained Earnings, 1}] 40,000 15,000 Sales 105,000 50,000 Equity in Subsidiary Income 14,400 0 520(1400 $135,000 The accounts payable of Scoba Company include $3,000 payable to Plank Company. Required: A. What method is being used by Flank to account for its invesbnent in Scoba Company? How can you tell? B. Prepare a consolidated statements 1Inlirorltpzallzler at December 31, 2003. Any difference between cost and book lvalue relates to subsidiary land