Q 1. Presented below are selected amounts from the separate unconsolidated financial statements of Poe Corp. and its 90%-owned subsidiary, Shaw Co., at December 31,2002.

On January 2, 20X2, Poe, Inc. purchased 90% of Shaw Co.s 100,000 outstanding common stock for cash of $155,000. On that date the fair value of the noncontrolling interest was $1.70 per share. On that date, Shaws stockholders equity equaled $150,000 and the fair values of Shaws identifiable assets and liabilities equalled their carrying amounts. Poe has accounted for the purchase as an acquisition.

Calculate the amounts that will appear on Poes consolidated financial statement on December 31,

20X2.

1. Cash

2. Goodwill

3. Equipment

4. Common stock

Presented below are selected amounts from the separate unconsolidated financial statements of Poe Corp. and its 90%-owned subsidiary, Shaw Co., at December 31, 20x2. Additional information follows: Poe Shaw Selected income statement amounts Sales $710,000 $530,000 Cost of goods sold 490,000 370,000 Gain on sale of equipment 21,000 Earnings from investment in subsidiary 63,000 Interest expense 16,000 Depreciation 25,000 20,000 Selected balance sheet amounts Cash Inventories Equipment Accumulated depreciation Investment in Shaw Investment in Shaw bonds Discount on bonds Bonds payable Common stock Additional paid-in capital Retained earnings $ 50,000 229,000 440,000 (200,000) 191,000 100,000 (9,000) $ 15,000 150,000 360,000 (120,000) (100,000) (250,000) (404,000) (200,000) (10,000) (40,000) (140,000) Selected statement of retained earnings amounts Beginning balance, December 31, 20X1 Net income Dividends paid $272,000 212,000 80,000 $100,000 70,000 30,000