Pruitt Corporation acquired all of the voting stock of Soto Corporation on January 1, 2010, for $210,000 when Soto had common stock of $150,000 and retained earnings of $24,000. The excess of implied over book value was allocated $9,000 to inventories that were sold in 2010, $12,000 to equipment with a 4-year remaining useful life under the straight-line method, and the remainder to goodwill. Financial statements for Pruitt and Soto Corporations at the end of the fiscal year ended December 31, 2011 (two years after acquisition), appear in the first two columns of the partially completed consolidated statements workpaper. Pruitt Corp. has accounted for its investment in Soto using the partial equity method of accounting.

Required: Complete the consolidated statements workpaper for Pruitt Corporation and Soto Corporation for December 31, 2011.

I already have the answer below . What I would like to know is the correct entries for (a),(b) and (c) and explanations and calculations of them.

Also please post a correct answer if it is wrong.

Thank you very much in advance.

Required Complete the consolidated statements workpaper for Pruitt Corporation and Soto Corporation for December 31, 2011. Pruitt Corporation and Soto Corporation Consolidated Statements Workpaper at December 31, 2011 Eliminations Consolidated Balances Equity from Subsidiary 6,000 Cost of Sales (450,000) (90,000) Other Expenses 90000 26000 Net Income to Ret. Earn. Pruitt Retained Earnings Soto Retained Earnings 90,000 36.000 Add: Net Income Less: Dividends Retained Earnings 1231 02000 54000 BALANCE SHEET Cash 42.000 21.000 63000 Inventories 45,000 Land 33,000 18 000 Equipment and Buildings-net Investment in Soto Corp. L 240000 Total Assets LA & EQUITIES Liabilities 45,000 Common Stock 300,000 150,000 i2000 54000l Retained Earnings Total Equities 570.000 249.000