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Stuart Corporation purchased 75% of the outstanding voting stock of Pete Corporation for $2,400,000 on January 1, 2014. On this date Petes shareholders equity consisted

Stuart Corporation purchased 75% of the outstanding voting stock of Pete Corporation for $2,400,000 on January 1, 2014. On this date Petes shareholders equity consisted of the following (in thousands):

Common stock, $10 par $1,000

APIC 600

Retained Earnings 800

Total SE $2,400

The excess fair value of the net assets acquired was assigned 10% to undervalued inventory (sold in 2014), 40% to undervalued plant assets with a remaining useful life of eight years, and 50% to goodwill.

Comparative trial balances of Stuart Corporation and Pete Corporation at December 31, 2018, are as follows (in thousands):

Stuart

Pete

Other assets net

3,765

2,600

Investment in Pete

2,340

-

Expenses (including cost of sales)

3,185

600

Dividends

500

200

9,790

3,400

Common Stock, $10 par value

3,000

1,000

APIC

850

600

Retained earnings

1,670

800

Sales revenues

4,000

1,000

Income from Pete

270

-

9,790

3,400

Required:

Determine the amounts that would appear in the consolidated financial statements of Stuart Corporation and Subsidiary for each of the following items:

  1. Goodwill at December 31, 2018.
  2. Income to Non-controlling interest for 2018.
  3. Consolidated retained earnings at December 31, 2017
  4. Consolidated retained earnings at December 31, 2018.
  5. Controlling share of consolidated net income for 2018.
  6. Non-controlling interest at December 31, 2017

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