Paragraph Corporation acquired controlling ownership of Sentence Corporation on December 31, 20X3, and a consolidated balance sheet was prepared immediately. Partial balance sheet data for the two companies and the consolidated entity at that date follow:

During 20X3, Paragraph provided engineering services to Sentence and has not yet been paid for them. There were no other receivables or payables between Paragraph and Sentence at December 31, 20X3.

Required

a. What is the amount of unpaid engineering services at December 31, 20X3, on work done by Paragraph for Sentence?

b. What balance in accounts receivable did Sentence report at December 31, 20X3?

c. What amounts of wages payable did Paragraph and Sentence report at December 31, 20X3?

d. What was the fair value of Sentence as a whole at the date of acquisition?

e. What percentage of Sentence’s shares were purchased by Paragraph?

f. What amounts of capital stock and retained earnings must be reported in the consolidated balance sheet?

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PARAGRAPH CORPORATION AND SENTENCE CORPORATION Balance Sheet Data December 31, 20X3 Item Cash Accounts Receivable Inventory Buildings & Equipment Less: Accumulated Depreciation Investment in Sentence Corporation Goodwill Total Assets Accounts Payable Wages Payable Notes Payable Common Stock Retained Earnings Noncontrolling Interest Total Liabilities & Equities Paragraph Corporation $ 63,650 98,000 105,000 400,000 (215,000) ? $620,000 $115,000 ? 200,000 120,000 115,000 $ ? Sentence Corporation $ 35,000 ? 80,000 340,000 (140,000) $380,000 $ 46,000 ? 110,000 75,000 125,000 $380,000 Consolidated Entity $ 98,650 148,000 195,000 640,000 (215,000) 9,000 $875,650 $146,000 94,000 310,000 ? ? 90,650 $875,650