The two following separate cases show the financial position of a parent company and its subsidiary...

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The two following separate cases show the financial position of a parent company and its subsidiary company on November 30, 2014, just after the parent had purchased 90% of the subsidiary's stock: Case I Case II Р Company S Company P Company S Company Current assets $ 874,700 $262,200 $ 785,100 $279,000 Investment in S Company 189,700 189,700 Long-term assets 1,397,800 400,500 1,210,100 400,500 Other assets 90,400 39,700 70,300 69,900 Total $2,552,600 $702,400 $2,255,200 $749,400 Current liabilities $ 641,900 $270,400 $ 705,000 $262,300 Long-term liabilities 848,500 288,200 924,900 269,300 Common stock 601,100 180,300 601,100 180,300 Retained earnings 461,100 (36,500 ) 24,200 37,500 Total $2,552,600 $702,400 $2,255,200 $749,400 Case II: Prepare a November 30, 2014, consolidated balance sheet workpaper. Assume that any excess of book value over the value implied by purchase price is due to overvalued long- term assets. (Round answers to 0 decimal places, e.g. 125.) P COMPANY AND SUBSIDIARY Consolidated Balance Sheet Workpaper November 30, 2014 Eliminations Noncontrolling Consolidated Case II Company Company Balance Dr. Cr. Interest Current Assets $785,100 $279,000 Investment in S Company 189,700 189700 Difference between Implied and Book Value Long-term Assets 1,210,100 400,500 Other Assets 70,300 69,900 Total Assets 2,255,200 749,400 Current Liabilities 705,000 262,300 Long-term Liabilities 924,900 269,300 Common Stock: Total Assets 2,255,200 749,400 Current Liabilities 705,000 262,300 Long-term Liabilities 924,900 269,300 Common Stock: P Company 601,100 S Company 180,300 Retained Earnings P Company 24,200 S Company 37,500 Noncontrolling Interest Total Liabilities and Equity $2,255,200 $749,400 The two following separate cases show the financial position of a parent company and its subsidiary company on November 30, 2014, just after the parent had purchased 90% of the subsidiary's stock: Case I Case II Р Company S Company P Company S Company Current assets $ 874,700 $262,200 $ 785,100 $279,000 Investment in S Company 189,700 189,700 Long-term assets 1,397,800 400,500 1,210,100 400,500 Other assets 90,400 39,700 70,300 69,900 Total $2,552,600 $702,400 $2,255,200 $749,400 Current liabilities $ 641,900 $270,400 $ 705,000 $262,300 Long-term liabilities 848,500 288,200 924,900 269,300 Common stock 601,100 180,300 601,100 180,300 Retained earnings 461,100 (36,500 ) 24,200 37,500 Total $2,552,600 $702,400 $2,255,200 $749,400 Case II: Prepare a November 30, 2014, consolidated balance sheet workpaper. Assume that any excess of book value over the value implied by purchase price is due to overvalued long- term assets. (Round answers to 0 decimal places, e.g. 125.) P COMPANY AND SUBSIDIARY Consolidated Balance Sheet Workpaper November 30, 2014 Eliminations Noncontrolling Consolidated Case II Company Company Balance Dr. Cr. Interest Current Assets $785,100 $279,000 Investment in S Company 189,700 189700 Difference between Implied and Book Value Long-term Assets 1,210,100 400,500 Other Assets 70,300 69,900 Total Assets 2,255,200 749,400 Current Liabilities 705,000 262,300 Long-term Liabilities 924,900 269,300 Common Stock: Total Assets 2,255,200 749,400 Current Liabilities 705,000 262,300 Long-term Liabilities 924,900 269,300 Common Stock: P Company 601,100 S Company 180,300 Retained Earnings P Company 24,200 S Company 37,500 Noncontrolling Interest Total Liabilities and Equity $2,255,200 $749,400

Answer rating: 100% (QA)

Answer Book value of S Company Common stock 180300 Retained earnings 37500 Book value of S Company 2... View the full answer