Trial balances for Porter Company and its subsidiary, Spitz Company, as of December 31, 2011, follow:

Porter Company made the following open-market purchase and sate of Spitz Company com mon stock: January 1, 2007, purchased 45,000 shares for $135,000; May 1, 2011, sold 4,500 shares for $28,000.
The book value of Spitz Company's net assets on January 1, 2007, was $140,000; the ex cess of cost over net assets acquired relates to land. Subsequent changes in the book value of Spitz Company's net assets are entirely attributable to earnings retained in the business. Spitz Company earns its income evenly throughout the year. Porter Company uses the cost method to account for its investment.

Required:
Prepare a consolidated financial statements workpaper as of December 31, 2011. Begin the income statement section of the workpaper with "Net Income Before Dividend Income" which is $63,200 for Porter Company and $60,000 for SpitzCompany.

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Debils Porter itz 40,000 38,000 64,000 Cash Accounts Receivable (net) Inventory Investment in Spitz Company Plant Assets Land Dividends Declared, 10/1 $90,000 62,000 106,000 121,500 320,000 69,000 50,000 -818,500 149,000 46,000 30,000 Total m Credits Liabilities Common Stock, $2 per value Other Contributed Gapital 1/1 Retained Earnings Income Summary Porter $102,000 250,000 172,500 206,500 87,500 818.500 61,000 100,000 20,000 126,000 60,000 $367,000 Total