Pork Company owns 60 percent of Swine Corporation’s voting shares, purchased on May 17, 20X1, at book value. At that date, the fair value of the noncontrolling interest was equal to 40 percent of the book value of Swine Corporation. The companies’ permanent accounts on December 31, 20X6, contained the following balances:

On January 1, 20X2, Pork paid $100,000 for equipment with a 10-year expected total economic life. The equipment was depreciated on a straight-line basis with no residual value. Swine purchased the equipment from Pork on December 31, 20X4, for $91,000. Assume Swine did not change the remaining estimated useful life of the equipment. Swine sold land it had purchased for $30,000 on February 23, 20X4, to Pork for $20,000 on October 14, 20X5. Assume Pork uses the fully adjusted equity method.

Required

a. Prepare a consolidated balance sheet worksheet in good form as of December 31, 20X6.

b. Prepare a consolidated balance sheet as of December 31, 20X6.

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Cash and Receivables Inventory Land Buildings & Equipment Investment in Swine Corporation Stock Accumulated Depreciation Accounts Payable Notes Payable Common Stock Retained Earnings Pork Company $101,000 80,000 150,000 400,000 141,000 872,000 $135,000 90,000 200,000 100,000 347,000 $872,000 Swine Corporation $ 20,000 40,000 90,000 300,000 $450,000 $ 85,000 25,000 90,000 200,000 50,000 $450,000