Craft Corporation held 80 percent of Delta Corporations outstanding common shares on December 31, 20X2, which it

Craft Corporation held 80 percent of Delta Corporation’s outstanding common shares on December 31, 20X2, which it had acquired at underlying book value. When the shares were acquired, the fair value of the noncontrolling interest was equal to 20 percent of Delta’s book value. Balance sheets for the two companies on that date follow:

On January 1, 20X3, Delta issued 4,000 additional shares of its $10 par value common stock to Nonaffiliated Corporation for $45 per share. Craft recorded the change in the book value of its Delta shares as an adjustment to its investment in Delta and an adjustment to its additional paid-in capital.

Required
a. Give the worksheet elimination entry needed in preparing a consolidated balance sheet as of January 1, 20X3, immediately following the sale of shares by Delta.
b. Prepare a consolidated balance sheet worksheet as of the close of business on January 1, 20X3.
c. Prepare a consolidated balance sheet as of the close of business on January 1,20X3.

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CRAFT CORPORATION Balance Sheet December 31, 20X2 Cash Accounts Receivable Inventory Buildings & Equipment Less: Accumulated Depreciation Investment in Delta Corporation Total Assets S 50,000 90,000 180,000 700,000 (200,000) 480,000 $1,300,000 Accounts Payable Mortgages Payable Common Stock Additional Paid-In Capital Retained Earnings 70,000 250,000 300,000 180,000 500,000 Total Liabilities & Equities 1,300,000 DELTA CORPORATION Balance Sheet December 31, 20X2 Cash Accounts Receivable Inventory Buildings & Equipment S 50,000 120,000 200,000 600,000 (220,000) $ 750,000 Accounts Payable Taxes Payable Common Stock Additional Paid-In Capital Retained Earnings Total Liabilities & Equities 70,000 80,000 200,000 50,000 350,000 Total Assets 750,000