On January 1, 2023, Phelps Company purchased an 85% interest in Sloane Company for $955,000 when the retained earnings of Sloane Company were $150,000. The difference between implied and book value was assigned as follows:

One- half of the inventory was sold in 2023 and the remaining inventory was sold in 2024. The bonds mature in eight years. On December 31, 2023, Phelps Company’s inventory contained $10,000 in unrealized intercompany profit. During 2024 Phelps Company sold merchandise with a cost of $200,000 to Sloane Company at a 30% markup on cost. Only $65,000 (selling price) of this merchandise remains in Sloane Company’s 2024 ending inventory. As of December 31, 2024, Sloane Company owes Phelps Company $40,000 for merchandise purchased during 2024. Equipment with a book value of $500,000 was sold by Sloane Company on January 2, 2024, to Phelps Company for $640,000. This equipment had an estimated useful life when purchased by Sloane Company on July 1, 2021, of 10 years. Financial data for 2024 are presented here:

Required:
Prepare a consolidated financial statements workpaper for the year ended December 31, 2024.

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Inventory Land Discount on Bonds Payable Goodwill $48,000 36,000 48,000 91,529