BUS$726$ Advanced Accounting

Fall $2024$

Exam #$1$

P Corporation acquired $80\%$ of S Corporation on January $1,2017,$ for $$240,000$ cash when S$\text{'}$s stockholders' equity consisted of $$100,000$ of Common Stock and $$30,000$ of Retained Earnings. The difference between the price paid by $P$ and the underlying equity acquired in $S$ was allocated solely to a patent amortized over $10$ years.

$P$ sold merchandise to $S$ during the year in the amount of $$30,000.$ $$10,000$ worth of inventory is still on hand at the end of the year with an unrealized profit of $$4,000.$ The separate company statements for $P$ and $S$ appear in the first two columns of the partially completed consolidated workpaper.

Required:

Complete the consolidated workpaper for P and S for the year $2017.$

Worksheet format available in Blackboard $($if needed$)$