Push Corporation paid $16,200 for a 90% interest in Swish Corporation on January 1, 2019, when Swish stockholders' equity consisted of $10,000 Capital Stock and $3,000 of Retained Earnings. The excess cost over book value was attributable to goodwill. Assume proportional pricing for the NCI.

Additional information:

1.Push sells merchandise to Swish at 120% of Push's cost. During 2019, Push's sales to Swish were $4,800, of which half of the merchandise remained in Swish's inventory at December 31,2019(The 2019 ending inventory was sold in 2020.) During 2020, Push's sales to Swish were $6,000 of which 60% remained in Swish's inventory at December 31, 2020.

At year-end 2020, Swish owed Push $1,500 for the inventory purchased during 2020.

2.Push Corporation sold equipment with a book value of $2,000 and a remaining useful life of four years and no salvage value to Swish Corporation on January 1, 2020 for $2,800.Straight-line depreciation is used.

3.During 2020, Swish sold to Push land for $50,000 that had a book value of $20,000. Push still owns the land at 12/31/20.

4.Separate company financial statements for Push Corporation and Subsidiary at December 31, 2020 are summarized in the first two columns of the consolidation working papers. See Spreadsheet Tab.

1. Prepare the acquisition analysis as of acquisition date. Compute the

unamortized acquisition differential as of 1/1/2019. Goodwill is not considered impaired at 12/31/20.

2. Analyze each intercompany transaction. Label as either upstream or

downstream. Determine amounts of profit that are unrealized and/or realized for 2020.

3. SEPARATELY calculate Net income to the controlling interest for the year 2020

4. Verify the calculation of the balance in the account equity in sub

earnings and record the parent company entries with respect to its investment during 2020

5.all elimination/consolidation entries for 2020

6. Complete the consolidating spreadsheet for the year ended December 31, 2020.

INCOME STATEMENT P S

Sales 60,000 14,000

Equity in Sub earnings 4,600

Gain on sale of equip 800

gain on sale of land 30,000

total revenues 65,400 44,000

cost of goods 26,000 4,400

expenses 28,000 3,600

total expenses 54,000 8,000

total net income-

less income to NCI 11,400 36,000

net inc to control interest

Retained Earnings Statement

RE 1/1 9,500 5,000

Net income 11,400 36,000

Dividends declared 7,000 2,000

Re 12/31 13,900 39,000

Balance Sheet

Cash 5,500 33,000

accts rec 7,000 4,000

inventory 10,000 4,500

Land 50,000 3,500

Equipment, net 24,000 9,000

Investment in S 20,400

Total assets 116,900 54,000

Acc Payable 53,000 5,000

Common Stk 50,000 10,000

Retained Earnings 13,900 39,000

noncontrol interest total

liabilities and equity 116,900 54,000