WORKSHEET	TRAIL BALANCE		ELIMINATIONS AND ADJUSTMENTS
PROBLEM 6							CONSOL.		CONTROL.	CONSOL.
	PRANGE	SEAMAN					INCOME		RETAINED	BALANCE
ACCOUNT TITLES	COMPANY	COMPANY	REF	DEBITS	REF	CREDITS	STATEMENT	NCI	EARNINGS	SHEET
Inventory, December 31	100,000	105,000
Other Current Assets	285,000	325,000
Investment in Sub. Company	588,000
Land	140,000	80,000
Buildings and Equipment	315,000	340,000
Accumulated Depreciation	(252,000)	(130,000)
Patent	60,000
Current Liabilities	(150,000)	(70,000)
Bonds Payable		(100,000)
Other Long-Term Liabilities	(200,000)	(40,000)
Common Stock - P Co.	(200,000)
Other Paid in Capital - P Co.	(100,000)
Retained Earnings - P Co.	(474,000)
Common Stock - S Co.		(150,000)
Other Paid in Capital - S Co.		(100,000)
Retained Earnings - S Co.		(200,000)
Net Sales	(600,000)	(380,000)
Cost of Goods Sold	360,000	228,000
Operating Expenses	140,000	62,000
Subsidiary Income	(72,000)
Dividends Declared - P Co.	60,000
Dividends Declared - S Co.		30,000
Consolidated Net Income
NCI
Controlling Interest
Total NCI
R/E CONTRL INT. 12/31
	0	0
DETERMINATION AND DISTRIBUTION OF EXCESS SCHEDULE:
						IMPLIED FAIR	PARENT PR.	NCI VALUE
						VALUE	80%	20%
ADJUSTMENT OF IDENTIFIABLE ACCOUNTS:
	SUBSIDIARY COMPANY					PARENT COMPANY
	INCOME DISTRIBUTION					INCOME DISTRIBUTION
	SCHEDULE					SCHEDULE

6. On January 1, 2016, Prange Company acquired 80% of the common stock of Seaman Company for $500,000. On this date Seaman had total owners' equity of $400.000. Any excess of cost over book value is attributable to patent, which is to be amortized over 20 years. During 2016 and 2017, Prange has appropriately accounted for its investment in Seaman using the simple equity method. On January 1, 2017, Prange held merchandise acquired from Seaman for $30,000. During 20 17, Seaman sold merchandise to Prange for $100.000 of which s20,000 is held by Prange on December 31, 2017 On December 31, 2017, Prange still owes Seaman $20.000 for merchandise acquired in December Required Complete the attached worksheet for consolidated financial statements for the year ended December 31, 2017