Peace Corporation acquired 75 percent of the ownership of Symbol Company on January 1, 20X1. The fair value of the noncontrolling interest at acquisition was equal to its proportionate share of the fair value of the net assets of Symbol. The full amount of the differential at acquisition was attributable to buildings and equipment, which had a remaining useful life of eight years. Financial statement data for the two companies and the consolidated entity at December 31, 20X6, are as follows:

All unrealized profit on intercompany inventory sales on January 1, 20X6, were eliminated on Peace’s books. All unrealized inventory profits at December 31, 20X6, were eliminated on Symbol’s books. Assume Peace uses the fully adjusted equity method and that Peace does not make the optional depreciation consolidation worksheet entry.

Required

a. For the buildings and equipment held by Symbol when Peace acquired it and still on hand on December 31, 20X6, by what amount had buildings and equipment increased in value from their acquisition to the date of combination with Peace?

b. What amount should be reported as accumulated depreciation for the consolidated entity at December 31, 20X6 (assuming Peace does not make the optional accumulated depreciation consolidation entry)?

c. If Symbol reported capital stock outstanding of $60,000 and retained earnings of $30,000 on January 1, 20X1, what amount did Peace pay to acquire its ownership of Symbol?

d. What balance does Peace report as its investment in Symbol at December 31, 20X6?

e. What amount of intercorporate sales of inventory occurred in 20X6?

f. What amount of unrealized inventory profit exists at December 31, 20X6?

g. Give the consolidation entry used in eliminating intercompany inventory sales during 20X6.

h. What was the amount of unrealized inventory profit at January 1, 20X6?

i. What balance in accounts receivable did Peace report at December 31, 20X6?

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PEACE CORPORATION AND SYMBOL COMPANY Balance Sheet Data December 31, 20X6 Item Cash Accounts Receivable Inventory Buildings & Equipment Less: Accumulated Depreciation Investment in Symbol Company Total Assets Accounts Payable Other Payables Notes Payable Common Stock Retained Earnings Noncontrolling Interest Total Liabilities & Equity Peace Corporation $ 67,000 ? 125,000 400,000 (180,000) ? ? $ $ 86,000 ? 250,000 120,000 172,500 $? Symbol Company $ 45,000 55,000 90,000 240,000 (110,000) $320,000 $ 20,000 8,000 120,000 60,000 112,000 $320,000 Consolidated Entity $112,000 145,000 211,000 680,000 $ ? $ 89,000 ? 370,000 120,000 172,500 44,500 $?