THE MISSING INFORMATION ON BALANCE SHEET AND INCOME STATEMENT ARE MISSING BECAUSE THEY NEED TO BE ANSWERED. Washington Company purchased 100% of Jefferson Company on January 1, 20X1 for $1,000,000 when the book value of Jefferson was $750,000 with the excess caused by Equipment that was undervalued by $50,000 and Goodwill. The Equipment had a four year life. In 20x2 Washington sold inventory to Jefferson still in the inventory of Jefferson at year end with a profit of $3,000. During 20X3, Washington sold to Jefferson inventory costing $30,000 for $40,000. At December 31, 20x3, Jefferson still had $6,000 cost to Jefferson of that inventory in its inventory. The income statements and balance sheets for the two companies for 20X3 are shown below:

Cr Consolidated Washington Jefferson Dr. 300,000 100,000 Sales Cost of Goods Sold 60,000 240,000 40,000 40,000 60,000 10,000 Expenses Income from S Total Income 50,000 Begin. RE Dividends End.RE 800,000 20,000 820,000 730,000 10,000 770,000 Cash Receivables Inventory Propety/Equipment Accumulated Depr Patents Goodwill 100,000 70,000 50,000 500,000 -100,000 0 100,000 100,000 100,000 100,000 50,000 50,000 900,000 850,000 -100,000 50,000 30,000 Investment in 1,100,000 Liabilities Capital Stock Retained Earnings 282,000 500,000 130,000 200,000 770,000 1,100,000