Poco Company purchased 80% of Solo Company?s common stock on January 1, 2017, for $250,000. On December 31, 2017, the companies prepared the following trial balances:

Required:

Prepare a consolidated statements workpaper on December 31, 2017. Any difference between book value and the value implied by the purchase price relates to goodwill.

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