Pruitt Corporation owns 90% of the common stock of Sedbrook Company. The stock was purchased for $628,290 on January 1, 2012, when Sedbrook Companys retained earnings were $95,100. Preclosing trial balances for the two companies at December 31, 2016, are presented here:Prepare the consolidated statements workpaper for the year ended December 31, 2016. The January 1, 2016, inventory of Sedbrook Company includes $24,900 of profit recorded by Pruitt Corporation on 2015 sales. During 2016, Pruitt Corporation made intercompany sales of $249,300 with a markup of 20% on cost. The ending inventory of Sedbrook Company includes goods purchased in 2016 from Pruitt for $60,000.

Sedbrook Company $96,300 135,500 132,100 Cash Accounts Receivable (net) Inventory 1/1 Investment in Sedbrook Co. Other Assets Dividends Declared Purchases Other Expenses Total Pruitt Corporation $91,600 241,800 165,500 628,290 554,000 110,800 937,000 197,400 $2,926,390 475,200 35,300 419,400 163,700 $1,457,500 Accounts Payable Other Liabilities Common Stock Retained Earnings (1/1) Sales Dividend Income Total Ending Inventory $77,200 119,600 876,800 599,500 1,221,520 31,770 $2,926,390 $217,900 $35,900 46,600 603,000 144,800 627,200 $1,457,500 $142,800 PRUIT LUNPUNATION AND SUDSIDIARI Pruitt Corporation For the Year Ended December 31, 2016 Sedbrook Eliminations Company Debit Noncontrolling Interest Consolidated Balances Credit Income Statement Cost of Goods Sold: Retained Earnings Statement Balance Sheet Total 1/1 Noncontrolling Interest in Net Assets 12/31 Noncontrolling Interest Total Sedbrook Company $96,300 135,500 132,100 Cash Accounts Receivable (net) Inventory 1/1 Investment in Sedbrook Co. Other Assets Dividends Declared Purchases Other Expenses Total Pruitt Corporation $91,600 241,800 165,500 628,290 554,000 110,800 937,000 197,400 $2,926,390 475,200 35,300 419,400 163,700 $1,457,500 Accounts Payable Other Liabilities Common Stock Retained Earnings (1/1) Sales Dividend Income Total Ending Inventory $77,200 119,600 876,800 599,500 1,221,520 31,770 $2,926,390 $217,900 $35,900 46,600 603,000 144,800 627,200 $1,457,500 $142,800 PRUIT LUNPUNATION AND SUDSIDIARI Pruitt Corporation For the Year Ended December 31, 2016 Sedbrook Eliminations Company Debit Noncontrolling Interest Consolidated Balances Credit Income Statement Cost of Goods Sold: Retained Earnings Statement Balance Sheet Total 1/1 Noncontrolling Interest in Net Assets 12/31 Noncontrolling Interest Total