On January 1, 2010, Parker Company purchased 90% of the outstanding common stock of Sid Company for $180,000. At that time, Sid’s stockholders’ equity consisted of common stock, $120,000; other contributed capital, $20,000; and retained earnings, $25,000. Assume that any difference between book value of equity and the value implied by the purchase price is attributable to land. On December 31, 2010, the two companies’ trial balances were as follows:

Required:
A. Prepare a consolidated statements workpaper on December 31, 2010.
B. Prepare a consolidated statements workpaper on December 31, 2011, assuming trial balances for Parker and Sid on that datewere:

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Parker Sid 70,000 60,000 40,000 193,500 125,000 48,500 20,000 160,000 35,000 752,000 $20,000 35,000 30,000 Cash Accounts Receivable Inventory Inyestment in Sid Company Plant and Equipment Land Dividends Declared Cost of Goods Sold 90,000 45,000 15,000 65,000 20,000 $320,000 Operating Expenses Total Debits Accounts Payable Other Liabilities Common Stock, par value $10 Other Contributed Capital Retained Earnings, 1/1 Sales Equity in Subsidiary Income $ 16,500 15,000 200,000 70,000 168,000 260,000 22,500 $752,000 S 16,000 24,000 120,000 20,000 30,000 110,000 Total Credits 5320,000