The accounts of Pyle Company and its subsidiary, Stern Company, are summarized below as of December 31, 2011:

Pyle Company made the following open-market purchase and sale of Stern Company com mon stock: January 2, 2009, purchased 51,000 shares, cost $510,000; April 1, 2011, sold 3,000 shares, proceeds, $100,000.
The book value of Stern Company's net assets on January 2, 2009, $600,000, (including retained earnings of $120,000) approximated the fair value of those net assets. Subsequent changes in book value of the net assets are entirely attributable to earnings of Stern Com pany. Stern Company earns its income evenly throughout the year.

Prepare a consolidated financial statements workpaper as of December 31, 2011. Begin the income statement section of the workpaper with "Net Income Before Dividend Income" which is $172,000 and $186,000 for Pyle Company and Stern Company,respectively.

  • CreatedMarch 13, 2015
  • Files Included
Post your question