pital Stock and $30,000 of Retained Earnings. The difference between the fair value of Pawl's assets and liabilities and the book value was allocated to a plant asset with a remaining 10-year straight-line life that was overvalued on the books by $5,000. The remainder was attributable to goodwill. The separate company statements for Pawl and Snab appear in the first two columns of the partially completed consolidation working papers.
. Pawl Corporation acquired 90% of Snab Corporation on January 1, 2014 for $72,000 cash when Snab's
Required:
Complete the consolidation working papers for Pawl and Snab for the year 2014.
![Eliminations
Consol-
Pawl
Snab
Debit
Credit
idated
INCOME STATEMENT
Sales
60,000
$22,000
Income of Snab
3,510
Cost of Sales
Depreciation
Expense
Other
Expenses
Noncontrolling
Interest Share
13,000)
9,500)
2,000)
3,000)
(23,000)
6,100)
Net income
Retained
Earnings 1/1
Add:
Net income
Less:
Dividends
Retained
Earnings 12/31
BALANCE SHEET
Cash
Accounts
Receivable-net
5.
25,510
$3,400
25,000
$30,000
25,510
3,400
( 15,000) |
3,000)
35,510
$30,400
26,520
$7,000
22,000
10,000
Inventories
20,000
14,000
Land
Equipment and
Buildings-net
Investment in
Snab Corporation
Goodwill
27,000
42,000
70,000
38,000
72,810
$| 238, 330
$111,000
TOTAL ASSETS
LIAB. & EQUITY
Accounts payable $
Capital
Stock
Retained
Earnings
Noncontrolling
Interest
32,820
$50, 600
170,000
30,000
В0, 40
TOTAL LIAB. &
EQUITY
$111,000
238,330](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3c7b0865-514d-48b1-86a5-2d767998afc2%2Fc1fe94f5-d744-4305-b67d-41c301de3732%2Fjia4lq_processed.jpeg&w=3840&q=75)
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