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Workpaper Purchase and Sale of Shares, Equity Method LO 3 LO 4 ( Note: This is the same problem as PROBLEM 8 - 4 ,

WorkpaperPurchase 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.

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