Place Company purchased 92% of the common stock of Shaw, Inc. on January 1, 2022, for $400,000. Trial balances at the end of 2022 for the companies were:

Inventory balances on December 31, 2022, were $25,000 for Place and $15,000 for Shaw, Inc. Shaw’s accounts and notes payable contain a $15,000 note payable to Place.

Required:
Prepare a workpaper for the preparation of consolidated financial statements on December 31, 2022. The difference between book value of equity acquired and the value implied by the purchase price relates to subsidiary land, which is included in plant assets.

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Cash Accounts and Notes Receivable Inventory, 1/1 Investment in Shaw, Inc. Plant Assets Dividends Declared Purchases Selling Expenses Other Expenses Accounts and Notes Payable Other Liabilities Common Stock, $10 par Other Contributed Capital Retained Earnings, 1/1 Sales Dividend Income Place $ 80,350 200,000 70,000 400,000 300,000 35,000 240,000 28,000 15,000 $1,368,350 $ 99,110 45,000 150,000 279,000 225,000 550,000 20,240 $1,368,350 Shaw $ 87,000 210,000 50,000 200,000 22,000 150,000 20,000 13,000 $752,000 $ 38,000 15,000 100,000 149,000 170,000 280,000 $752,000