Punca Company purchased 85 of the common stock of Surrano
Punca Company purchased 85% of the common stock of Surrano Company on July 1, 2010, for a cash payment of $590,000. December 31, 2010, trial balances for Punca and Surrano were:

Surrano Company declared a $50,000 cash dividend on December 20, 2010, payable on January 10, 2011, to stockholders of record on December 31, 2010. Punca Company recognized the dividend on its declaration date. Any difference between book value and the value implied by the purchase price relates to subsidiary land, included in property and equipment.

Prepare a consolidated statements workpaper at December 31, 2010, assuming that revenue and expense accounts of Surrano Company for the entire year are included with those of Punca Company. (Full-year reportingalternative.)
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