P Corporation paid $420,000 for 70% of S Corporation's $10 par common stock on December 31,...

 

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P Corporation paid $420,000 for 70% of S Corporation's $10 par common stock on December 31, 2016, when S Corporation's stockholders' equity was made up of $300,000 of Common Stock, $90,000 of Other Contributed Capital and $60,000 of Retained Earnings S's identifiable assets and liabilities reflected their fair values on December 31, 2016, except for S's inventory which was undervalued by $60,000 and their land which was undervalued by $25,000. Balance sheets for P and S immediately after the business combination are presented in the partially completed work-paper below. Eliminations P. Debit Credit Noncontrolling Interest Consolidated Balances ASSETS Cash $40,000 $30,000 Accounts 30,000 185,000 45,000 receivable-net 45,000 Inventories Land 165.000 120,000 Plant assets- net 480,000 240,000 Investment in S Corp. Difference between implied and book value 420,000 Goodwill Total Assets EQUITIES $1.200.000 $500,000 Current liabilities Capital stock $170,000 600,000 $150,000 300.000 EQUITIES Current liabilities $170,000 600,000 $150,000 300,000 Capital stock Additional paid- in capital Retained earnings Noncontrolling interest 150,000 90,000 280,000 60,000 Total Equities $1.200.000 $600,000 Required: Complete the consolidated balance sheet workpaper for P Corporation and Subsidiary P Corporation paid $420,000 for 70% of S Corporation's $10 par common stock on December 31, 2016, when S Corporation's stockholders' equity was made up of $300,000 of Common Stock, $90,000 of Other Contributed Capital and $60,000 of Retained Earnings S's identifiable assets and liabilities reflected their fair values on December 31, 2016, except for S's inventory which was undervalued by $60,000 and their land which was undervalued by $25,000. Balance sheets for P and S immediately after the business combination are presented in the partially completed work-paper below. Eliminations P. Debit Credit Noncontrolling Interest Consolidated Balances ASSETS Cash $40,000 $30,000 Accounts 30,000 185,000 45,000 receivable-net 45,000 Inventories Land 165.000 120,000 Plant assets- net 480,000 240,000 Investment in S Corp. Difference between implied and book value 420,000 Goodwill Total Assets EQUITIES $1.200.000 $500,000 Current liabilities Capital stock $170,000 600,000 $150,000 300.000 EQUITIES Current liabilities $170,000 600,000 $150,000 300,000 Capital stock Additional paid- in capital Retained earnings Noncontrolling interest 150,000 90,000 280,000 60,000 Total Equities $1.200.000 $600,000 Required: Complete the consolidated balance sheet workpaper for P Corporation and Subsidiary

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