Please read the question carefully and then help us with the answers, small details such as: S Company has a Negative Retained Earnings Balance.

There are 2 parts to this question: I and II

Thank you so much.

The balance sheet shown for Pand S Company is to be used for Case I and Case II. This balance sheet is shown immediately after the 3 purchase of 90% of the Subsidiary's Stock. 4 Case 1 5 a. Prepare the November 30, 2020, consolidated balance sheet workpaper using the format below. Any difference between book 6 value of the equity and the value implied by the purchase price relates to subsidiary long term assets. You should prepare a Computation 7 and Allocation of Difference Schedule (CAD) to solve this case. P paid $190,000 to acquire S in Case! 8 P COMPANY AND SUBSIDIARY 9 Consolidated Balance Sheet Workpaper 10 November 30, 2020 11 P S Eliminations Noncontrolling Consolidated 12 Company Company Dr Cr Interest Balance 13 Current Assets 880,000 260,000 14 Investment in S Compa 190,000 15 16 Long term Assets 1,400,000 400,000 17 Other Assets 90.000 40,000 18 Total 2,580,000 700,000 19 20 Current Liabities 640,000 270,000 21 Long term Liabilities 850,000 290,000 22 Common Stock 23 P Company 600,000 24 S Company 180,000 25 Retained Eamings 26 P Company 470,000 27 S Company (40,000) 28 Noncontrolling Interest 29 Total 2.560,000 700,000 30 lumal entry descriptions 31 Case 11 9 Assume that Company S's balance sheet is the same as used for Case I. Scompany had 50,000 shares of common stock outstanding and that company Pacquired 90% of the shares for $4.50 a share. Shortly after acquisition, the noncontrolling shares were selling for $1.25 a 1 share. Prepare a computation and allocation of difference schedule(CAD) using this information. Your CAD Schedule will be different 2 than the one you calculated in Parta. 33 14 Prepare a computation and allocation of differece schedule (CAD) using the information regarding the purchase price of $4.50 for 90% of 45 the stock and the fact that the noncontrolling shares were selling for $1.25 a share. 46 47 48 49 50 51 52