Refer to this data for questions 22 through 26.

Pace Corporation paid $400,000 for an 80% interest in Stew Corporation on January 1, 20X6 when the stockholders' equity of Stew consisted of $200,000 capital stock and $120,000 retained earnings. The following assets of Stew had fair values different from their book values when Pace acquired its interest:

	Book Value		Fair Value
Inventories (sold in 20X6)	$ 50,000		$ 30,000
Equipment (8-year life at the time of combination) Bonds Payable (matures 5 yrs after acquisition)	600,000 (500,000)		664,000 (525,000)

Additional information:

Stews accounts payable at December 31, 20X8 included $10,000 owed to Pace.

Pace and Stew's financial statements for the year ended 12/31X8 are provided below:

Pace Corporation and Subsidiary Consolidation Working Papers
For the year ended December 31, 20x8
	Pace	Stew	Adjustments & Eliminations (In 000's)				Consolidated
	(In 000s)	(In 000s)					(In 000's)
Income Statement				DR.		CR.
Sales	$882.0	$300.0
Income from Stew	37.6
Cost of sales	(600.0)	(150.0)
Operating expenses	(150.0)	(75.0)
Interest expense	(30.0)	(25.0)
Consolidated net income (CNI)	139.6	50.0
Controlling share of CNI	$139.6	$50.0
Retained Earnings
Retained earnings-Pace 1/1/X8	$105.0
Retained earnings-Stew 1/1/X8		$160.0
Net income	139.6	50.0
Dividends	(100.0)	(20.0)
Retained earnings-12/31/X8	$144.6	$190.0
Balance Sheet
Cash	$89.8	$15.0
Accounts receivable	72.0	20.0
Inventories	100.0	60.0
Loan receivable from Stew	50.0
Land	160.0	85.0
Equipment-net	240.0	730.0
Dividends receivable	8.0
Investment in Stew	464.8
Totals	$1,184.6	$910.0
Accounts payable	$100.0	$60.0
Dividends payable	70.0	10.0
Bonds payable	170.0	400.0
Loan payable to Pace		50.0
Capital stock	700.0	200.0
Retained earnings	144.6	190.0
Totals	$1,184.6	$910.0

Calculate the Difference (or Excess)

Pre-Calculate Goodwill

Complete the following Amortization Schedule. Click Here to Download the excel file, complete the file, save the file on your computer, upload the completed file in the drop box below.

Prepare all necessary journal entries in the consolidated workpapers at 12/31/x8. Hint - there are 9.

1. Eliminate income from Sub

2. Create NCI share

3. Eliminate BOY balances

4. Assign 1/1/X8 unamortized differences

5. & 6. Record amortization

7. - 9. Eliminate intercompany transactions

Complete the partially completed Consolidated Workpapers for year ended 12/31/x8. Click Here to Download the attached excel file, complete the file, save the file on your computer, and upload the saved file in the drop box below.