December 31, 2019, trial balances for Pledge Company and its subsidiary Stom Company follow:

Pledge Company purchased 72,000 shares of Stom Company?s common stock on January 1, 2016, for $300,000. On that date, Stom Company?s stockholders? equity was as follows:

Common Stock, $1 par value....................$100,000Other Contributed Capital.............................80,000Retained Earnings.........................................160,000Treasury Stock (10,000 shares at cost).......(20,000)Total..............................................................$320,000

Other information:

1. Receivables of Pledge Company include a $55,000, 12% note receivable from Stom Company.

2. Interest amounting to $6,600 has been accrued by each company on the note payable from Stom to Pledge. Stom Company has not yet paid this interest.

3. The difference between book value and the value implied by the purchase price relates to subsidiary land.

Required:

Prepare a consolidated statements workpaper for the year ended December 31, 2019. Note that the percentage purchased is based on outstanding shares of Stom and not issued shares.

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Pledge Stom $ 184,600 $ 72,000 Cash and Marketable Securities Receivables (net) 182,000 180,000 Inventory Investment in Stom Company Plant and Equipment (net) 214,000 212,000 478,400 309,000 301,000 85,000 Land 75,000 Cost of Goods Sold 460,000 185,000 Operating Expenses 225,000 65,000 Dividends Declared 50,000 30,000 Treasury Stock (10,000 shares at cost) 20,000 Total Debits $2,188,000 $1,140,000 $ 79,000 $ 96,000 Accounts Payable Accrued Expenses 31,000 18,000 Notes Payable 100,000 200,000 Common Stock, $1 par value Other Contributed Capital 300,000 100,000 150,000 80,000 Retained Earnings, 1/1 550,000 320,000 Sales 880,000 340,000 Equity in Subsidiary Income Interest Income 74,400 -0- 6,600 3,000 Total Credits $2,188,000 $1,140,000