Poco Company purchased 80% of Solo Companys common stock on January 1, 2010, for $250,000. On December

Poco Company purchased 80% of Solo Company’s common stock on January 1, 2010, for $250,000. On December 31, 2010, the companies prepared the following trial balances:

Required:
Prepare a consolidated statements workpaper on December 31, 2010. Any difference between book value and the value implied by the purchase price relates togoodwill.

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Poco Solo Cash Inventory Investment in Solo Company Land Cost of Goods Sold Other Expense Dividends Declared 161,500 210,000 402,000 75,000 410,000 100,000 30,000 1,388,500 $125,000 195,000 150,000 125,000 80,000 15,000 690,000 $35,000 150,000 35,000 60,000 410,000 Total Debits Accounts Payable Common Stock Other Contributed Capital Retained Eamings, 1/1 Sales Equity in Subsidiary Income 154,500 200,000 60,000 50,000 760,000 164,000 Total Credits 1,388,500 690,000