Powell Corporation acquired 90% of the voting stock of Santer Corporation on January 1, 2021 for...

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Powell Corporation acquired 90% of the voting stock of Santer Corporation on January 1, 2021 for $11,700 when Santer had Capital Stock of $5,000 and Retained Earnings of $4,000. The amounts reported on the financial statements approximated fair value, with the exception of inventories, which were understated on the books by $500 and were sold in 2021, land which was undervalued by $1,000, and equipment with a remaining useful life of 5 years under the straight-line method which was undervalued by $1,500. Any remainder was assigned to goodwill. Financial statements for Powell and Santer Corporations at the end of the fiscal year ended December 31, 2022 appear in the first two columns of the partially completed consolidation working papers. Powell has accounted for its investment in Santer using the equity method of accounting. Powell Corporation owed Santer Corporation $100 on open account at the end of the year. Dividends receivable in the amount of $450 payable from Santer to Powell is included in Powell's net receivables. Required: Prepare the elimination entries required for consolidation on December 31, 2022. Show all required computations & Complete the consolidation working papers for Powell Corporation and Subsidiary for the year ended December 31, 2022. Powell Santer Eliminations Consolidated Depreciation Expense Other expenses INCOME STATEMENT Sales 10,000 6,500 Income from Santer 1,080 Cost of Sales 4,000) 3,300) (1,000) (1,000) (1,800) (700) Noncontrolling Interest Share Net income 4,280 1,500 Retained Earnings 2,510 5,000 1/1 Add: Net income 4,280 1,500 Less: Dividends Retained Earnings 12/31 BALANCE SHEET Cash Receivables-net |(2,000) (1,000)| 4,7 90 $ 5,500 1,440 1,900 1,100 600 Inventories 1,500 1,200 Land 1,000 1,600 Equipment and 7,500 6,700 Buildings-net 12,060 Investment in Santer Goodwill TOTAL ASSETS LIAB. EQUITY Accounts Payable Dividends Payable Capital Stock Ret. Earnings Nonctl. Interest 1/1 Nonctl. Interest 12/31 LIAB. & EQUITY 24,600 12,000 3, 810 1,000 2,000 500 14,000 5,000 4,790 5,500 24,600 12,000 Debit Credit Powell Corporation acquired 90% of the voting stock of Santer Corporation on January 1, 2021 for $11,700 when Santer had Capital Stock of $5,000 and Retained Earnings of $4,000. The amounts reported on the financial statements approximated fair value, with the exception of inventories, which were understated on the books by $500 and were sold in 2021, land which was undervalued by $1,000, and equipment with a remaining useful life of 5 years under the straight-line method which was undervalued by $1,500. Any remainder was assigned to goodwill. Financial statements for Powell and Santer Corporations at the end of the fiscal year ended December 31, 2022 appear in the first two columns of the partially completed consolidation working papers. Powell has accounted for its investment in Santer using the equity method of accounting. Powell Corporation owed Santer Corporation $100 on open account at the end of the year. Dividends receivable in the amount of $450 payable from Santer to Powell is included in Powell's net receivables. Required: Prepare the elimination entries required for consolidation on December 31, 2022. Show all required computations & Complete the consolidation working papers for Powell Corporation and Subsidiary for the year ended December 31, 2022. Powell Santer Eliminations Consolidated Depreciation Expense Other expenses INCOME STATEMENT Sales 10,000 6,500 Income from Santer 1,080 Cost of Sales 4,000) 3,300) (1,000) (1,000) (1,800) (700) Noncontrolling Interest Share Net income 4,280 1,500 Retained Earnings 2,510 5,000 1/1 Add: Net income 4,280 1,500 Less: Dividends Retained Earnings 12/31 BALANCE SHEET Cash Receivables-net |(2,000) (1,000)| 4,7 90 $ 5,500 1,440 1,900 1,100 600 Inventories 1,500 1,200 Land 1,000 1,600 Equipment and 7,500 6,700 Buildings-net 12,060 Investment in Santer Goodwill TOTAL ASSETS LIAB. EQUITY Accounts Payable Dividends Payable Capital Stock Ret. Earnings Nonctl. Interest 1/1 Nonctl. Interest 12/31 LIAB. & EQUITY 24,600 12,000 3, 810 1,000 2,000 500 14,000 5,000 4,790 5,500 24,600 12,000 Debit Credit