Workpaper$$Purchase and Sale of Shares, Equity Method LO $3$ LO $4$

$($Note: This is the same problem as PROBLEM $8-4,$ but assuming use of the complete or the partial equity method.$)$

Trial balances for Porter Company and its subsidiary, Spitz Company, as of December $31,2024,$ follow:

Debits

Porter

Spitz

Cash $$90,000$ $$40,000$

Accounts Receivable $($net$)62,00038,000$

Inventory $106,00064,000$

Investment in Spitz Company $231,660$

Plant Assets $320,000149,000$

Land $69,00046,000$

Dividends Declared, $10/150,00030,000$

$$Total $$928,660$ $$367,000$

Credits

Liabilities $$102,000$ $ $61,000$

Common Stock, $$2$ par value $250,000100,000$

Other Contributed Capital $161,16020,000$

$1/1$ Retained Earnings $301,900126,000$

Income Summary $113,60060,000$

$$Total $$928,660$ $$367,000$

Porter Company made the following open$-$market purchase and sale of Spitz Company common stock: January $1,2025,$ purchased $45,000$ shares for $$135,000$; May $1,2024,$ sold $4,500$ shares for $$28,000.$

The book value of Spitz Company's net assets on January $1,2025,$ was $$140,000$; the excess of cost over net assets acquired relates to land. Subsequent changes in the book value of Spitz Company's net assets are entirely attributable to earnings retained in the business. Spitz Company earns its income evenly throughout the year.

Required:

Prepare a consolidated financial statements workpaper as of December $31,2024.$ Begin the income statement section of the workpaper with $$Net Income before Equity in Subsidiary Income and Gain on Sale of Investment,$$ which is $$63,200$ for Porter Company and $$60,000$ for Spitz Company.