Place Company purchased 92% of the common stock of Shaw, Inc. on January 1, 2017, for $400,000. Trial balances at the end of 2017 for the companies were:

Inventory balances on December 31, 2017, were $25,000 for Place and $15,000 for Shaw, Inc. Shaw?s accounts and notes payable contain a $15,000 note payable to Place.

Required:

Prepare a workpaper for the preparation of consolidated financial statements on December 31, 2012. The difference between book value of equity acquired and the value implied by the purchase price relates to subsidiary land, which is included in plant assets.

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Place Shaw $ 80,350 $ 87,000 Cash Accounts and Notes Receivable 200,000 210,000 Inventory, 1/1 70,000 50,000 Investment in Shaw, Inc. 400,000 Plant Assets 300,000 200,000 Dividends Declared 35,000 22,000 Purchases 240,000 150,000 Selling Expenses Other Expenses 28,000 20,000 15,000 13,000 $1,368,350 $752,000 Place Shaw Accounts and Notes Payable $ 99,110 $ 38,000 Other Liabilities 45,000 15,000 Common Stock, $10 par 150,000 100,000 Other Contributed Captial Retained Earnings, 1/1 279,000 149,000 225,000 170,000 Sales 550,000 280,000 Dividend Income 20,240 $1,368,350 $752,000