Problem 3-1 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: Current assets Investment in s Company Long-term assets Case I P Company S Company $ 887,300 $260,000 190,800 1,387,400 396,700 89,500 39,800 $2,555,000 $696,500 Case II P Company S Company $ 779,100 $278,600 190,800 1,189,000 396,700 69,400 70,300 $2,228,300 $745,600 396 200 Other assets Total Current liabilities Long-term liabilities Common stock Retained earnings $ 641,800 851,900 596,800 464,500 $2,555,000 $267,400 288,700 179,100 (38,700 ) $696,500 $ 697,800 926,000 596,800 7,700 $2,228,300 $259,200 267,300 179,100 40,000 $745,600 Total (a1) Case I: Prepare a November 30, 2014, consolidated balance sheet workpaper. Any difference between book value of equity and the value implied by the purchase price relates to subsidiary long-term assets. (Round answers to 0 decimal places, e.g. 125.) P COMPANY AND SUBSIDIARY Consolidated Balance Sheet Workpaper November 30, 2014 PS Eliminations ons Company Company Dr. Cr. Noncontrolling Interest Consolidated Balance Case I Current Assets $887,300 $260,000 Investment in S Company 190,800 Difference between Implied and Book Value Long-term Assets 1,387,400 396,700 Other Assets 89,500 39,800 Total Assets 2,555,000 696,500 Current Liabilities 641,800 267,400 Long-term Liabilities 851,900 288,700 Common Stock: P Company 596,800 S Company 179,100 Retained Earnings P Company 464,500 s Company (38,700 ) Noncontrolling Interest $ Total Liabilities and Equity $2,555,000 $696,500