Problem Company owns $90$ percent of Solution Dairy$$s stock. The balance sheets of the two companies immediately after the Solution

acquisition showed the following amounts:

Problem Solution

Company Dairy

Assets

Cash & Receivables $$130,000$ $$70,000$

Inventory $210,00090,000$

Land $70,00040,000$

Buildings & Equipment $($net$)390,000220,000$

Investment in Solution Dairy $270,000$

Total Assets $$1,070,000$ $$420,000$

Liabilities & Stockholders$$ Equity

Current Payables $$80,000$ $$40,000$

Long$-$Term Liabilities $200,000100,000$

Common Stock $400,00060,000$

Retained Earnings $390,000220,000$

Total Liabilities & Stockholders$$ Equity $$1,070,000$ $$420,000$

The fair value of the noncontrolling interest at the date of acquisition was determined to be $$30,000.$ The full amount of the increase over book

value is assigned to land held by Solution. At the date of acquisition, Solution owed Problem $$8,000$ plus $$900$ accrued interest. Solution had

recorded the accrued interest, but Problem had not.

Required:

Prepare a consolidated balance sheet worksheet.$($Values in the first two columns $($the "parent" and "subsidiary" balances$)$ that are to

be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as

positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter

this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the

credit column of the worksheet.$)$