Talbott Company purchased 80 percent of Short Company's stock on January 1, 20X8, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 20 percent of Short's book value. On December 31, 20X9, Short purchased 10 percent of Talbott's stock. Balance sheets for the two companies on December 31, 20X9, are as follows: Cash Accounts Receivable Inventory Buildings & Equipment (net) Investment in Short Co. Total Assets TALBOTT COMPANY Condensed Balance Sheet December 31, 20X9. $ 80,000 Accounts Payable 175,000 Bonds Payable 145,000 360,000 368,000 Common Stock Retained Earnings $1,128,000 Total Liabilities & Equities Cash Accounts Receivable Inventory Buildings & Equipment (net) Investment in Talbott Co. Total Assets $ 83,000 395,000 320,000 330,000 $1,128,000 SHORT COMPANY Condensed Balance Sheet December 31, 20x9 $ 50,000 Accounts Payable 80,000 Bonds Payable $ 59,000 105,000 129,000 Common Stock 210,000 300,000 Retained Earnings 250,000 65,000 $624,000 Total Liabilities & Equities $624,000 TALBOTT COMPANY AND SUBSIDIARY Consolidated Balance Sheet Worksheet December 31, 20X9 Consolidation Entries Talbott Co. Short Co. DR CR Consolidated 6 Balance Sheet Cash Accounts Receivable Inventory Buildings & Equipment (net) Investment in Short Co. Investment in Talbott Co.. Total Assets Accounts Payable Bonds Payable Common Stock Retained Earnings Treasury Stock NCI in NA of Short Co. Total Liabilities & Equity $ 0 $ 0 $ 0 $ 0 0 0 $ 0 0