Gamma, Inc., owns Cressida Corp. These two companies' individual balance sheets follow:

Requirements
1. Prepare a consolidated balance sheet of Gamma, Inc. It is sufficient to complete the consolidation work sheet. Use Exhibit 8-7 as a model.
2. What is the amount of stockholders' equity for the consolidated entity?

Transcribed Image Text:

A1 Gamma, Inc. 1 Consolidation Work Sheet Elimination ebit Consolidated amounts Cressida Gamma, Inc. Co it Cash 54,000 14,000 Accounts receivable, net 80 Note receivable from Gamma Inventor 40,000 84,000 99,000 53,000 290,000 98,000 24,000 599,000 Plant assets, net Investment in Cressida Other assets 10 Tota 8,000 300,000 12 13 Accounts pavable 14 Notes payable 15 Other liabilities 16 Common stock 17 Retained earnings 18 Total 46,000 154,000 78,000 113,000 28,000 36,000 138,000 599000S 300,000