Zigma purchased 100% of Standard for $200K on January 1^st 2XX1. The information below is from the December 31, 2XX1 accounts. At the time of purchase all FMV of all assets and liabilities equal book value, except for the following

Description Book Value Fair Value

Building $100,000 $130,000 10 Year Life

Inventory 10,000 20,000 2 month life

Land 5,000 20,000

Any excess from the purchase price will be allocated to goodwill. Requirement: Prepare the appropriate journal entries and complete the worksheet

			Eliminations
	Zigma	Standard	Debit	Credit	Consolidation
Income Statement
Sales	200,000	162,000
Other Expenses	(90,000)	(67,000)
Depreciation	(30,000)	(20,000)
Income from Standard	62,000
Net Income	142,000	75,000
NCI Net Income
CI Net Income
Statement of Retained Earnings
Beginning RE	175,000	75,000
Net Income	142,000	75,000
Less Dividends Declared	(32,000)	(10,000)
Ending Retained Earnings	285,000	140,000
Balance Sheet
Current Assets	198,000	180,000
Depreicable Assets	300,000	170,000
Accumulated Depreciation	(120,000)	(85,000)
Investment in Standard	252,000
Land		5,000
Goodwill
Total Assets	630,000	270,000
Current Liabilities	50,000	30,000
Long Term Liabilities	195,000	50,000
Common Stock	100,000	50,000
Retained Earnings	285,000	140,000
	-	-
Total Liabilities and Equity	630,000	270,000