Comprehensive problem December 31, Year 4 Initial Value

Consolidate the Two entities using the initial value method Assuming Canfiell purchased 100% of Karmwall

Accounts	Canfield	Karmwall	Debit	Credit	NC Interest	Totals
Income Statement
Revenues	(900,000)	(300,000)
Expenses	511,000	160,000
Investee Income	(21,000)	0
Net Income	(410,000)	(140,000)
Split net income
Statement of RE
Retained Earnings 1/1	(3,790,000)	(890,000)
Net Income	(410,000)	(140,000)
Dividends declared	200,000	30,000
Retained earnings 12/31	(4,000,000)	(1,000,000)
Balance Sheet
Current and Other Assets	250,000	400,000
Investment in Karmwall	1,050,000	0
PPE (net)	4,600,000	700,000
Patents	0	0
Goodwill	0	0
Land	1,100,000	500,000
Total Assets	7,000,000	1,600,000
Liabilities	(1,400,000)	(200,000)
Noncontrolling int 1/1
Noncontrolling int 12/31
Common Stock and APIC	(1,600,000)	(400,000)
Retained earnings	(4,000,000)	(1,000,000)
Total liabilities and equity	(7,000,000)	(1,600,000)