P4-1

Pea Corporation purchased 75 percent of the outstanding voting stock of Sen

Corporation for $2,400,000 on January 1, 2011. Sen’s stockholders’ equity on this
date consisted of the following (in thousands):

Capital Stock, $10 par $1000

Additional paid in capital 600
Retained Earnings Dec 31, 2010 800
Total stockholders equity $2400

The excess fair value of the net assets acquired was assigned 10 percent to
undervalued inven- tory (sold in 2011), 40 percent to undervalued plant assets
with a remaining useful life of eight years, and 50 percent to goodwill.
Comparative trial balances of Pea Corporation and Sen Corporation at December
31, 2015, are as follows:
Pea Sen
Other assts - net $ 3,765 $ 2,600
Invest in Sen - 75% 2,340 -
Expenses (including cost of sales) 3,185 600
Dividends 500 200
$ 9,790 $ 9,790
Capital stock, $10 par $ 3,000 $ 1,000
Addtitional paid-in capital 850 600
Retained Earnings 1,670 800
Sales 4,000 1,000
Income from Sen 270 -
$ 9,790 $ 9,790

REQUIRED: Determine the amounts that would appear in the consolidated financial
statements of Pea Corporation and Subsidiary for each of the following items:

1. Goodwill at December 31, 2015

2. Noncontrolling interest share for 2015
3. Consolidated retained earnings at December 31, 2014
4. Consolidated retained earnings at December 31, 2015
 5. Consolidated net income for 2015
6. Noncontrolling interest at December 31, 2014

7. Noncontrolling interest at December 31, 2015

Answer :
Investment in Sen (75%) January 1, 2011 $2,400

Implied fair value of Sen ($2,400 / 75%) $3,200

Book value of Sen (2,400)
Total excess of fair value over book value $ 800
Excess allocated:
10% to inventories (sold in 2011) $ 80
40% to plant assets (useful life 8 years) 320
50% to goodwill 400
Total excess of fair value over book value $ 800

1 Goodwill at December 31, 2015 (not amortized) $ 400

2 Noncontrolling interest share for 2015

Net income ($1,000 sales - $600 expenses) $ 400

Less: Amortization of excess

Plant assets ($320 / 8 yrs.) (40)
Adjusted Sen income $ 360
25% Share $ 90

3 Consolidated retained earnings December 31, 2014 Equal to

Pea’s December 31, 2014 retained earnings Since this a trial
balance, reported retained earnings equals beginning of 2015
retained earnings. $1,670

4 Consolidated retained earnings December 31, 2015

Pea’s retained earnings December 31, 2014 $1,670

Add: Pea’s net income for 2015 1,085

Less: Pea’s dividends for 2015 (500)
Consolidated retained earnings December 31 $2,255

5 Consolidated net income for 2015

Consolidated sales $5,000
 Less: Consolidated expenses ($3,785 + $40 depreciation) (3,825)
Total consolidated income 1,175
Less: Noncontrolling interest share (90)
Controlling share of consolidated net income for 2015 $1,085

6 Noncontrolling interest December 31, 2014

Sen’s stockholders’ equity at book value $2,400

Unamortized excess after four years:

Inventory 0
Plant assets ($320 - $160) 160
Goodwill 400
Sen’s stockholders’ equity at fair value $2,960
25% Sen’s stockholders’ equity at fair value $ 740

7 Noncontrolling interest December 31, 2015

Sen’s stockholders’ equity at book value $2,600

Unamortized excess after five years:

Inventory 0
Plant assets ($320 - $200) 120
Goodwill 400
Sen’s stockholders’ equity at fair value $3,120
P4-3
Pan Corporation acquired a 75 percent interest in Saf Corporation on January 1, 2011.
Financial state- ments of Pan and Saf Corporations for the year 2011 are as follows (in
thousand):

Pan Saf

Combined Income and Retained Earnings Statements for

the Year Ended December 31
Sales $800 $200

Income from Saf 27.6 —

Cost of sales (500) (100)
Other expenses (194) (52)
Net income 133.6 48
Add: Retained earnings January 1 360 68
Deduct: Dividends (100) (32)
Retained earnings December 31 $393.6 $ 84

Pan Saf
Balance Sheet at December 31
Cash $ 106 $ 30

Accounts receivable—net 172 40

Dividends receivable from Saf 12 —
Inventories 190 20
Note receivable from Pan — 10
Land 130 60
Buildings—net 340 160
Equipment—net 260 100
Investment in Saf 363.6 —
Total assets $1,573.6 $420

Accounts payable $ 170 $ 20

Note payable to Saf 10 —
Dividends payable — 16
 Capital stock, $10 par 1,000 300
Retained earnings 393.6 84
Total equities $1,573.6 $420

REQUIRED: Prepare consolidation workpapers for Pan Corporation and Subsidiary

for the year ended December 31, 2011. Only the information provided in the financial
statements is available; accordingly, your solution will require some standard
assumptions. Saf owned unrecorded patents having a fair value of
$112,000, and a useful life of 10 years.

Answer

Adjustments Consolidated
Pan Saf 75% and Statements
Eliminations
Income Statement
Sales $800 $200 $1,000
Income from Saf 27.6 a 27.6
Cost of sales 500* 100* 600*
Other expenses 194* 52* c 11.2 257.2*
Consolidated Net Income $ 142.8
Noncontrolling share f 9.2 9.2*
Controlling share of NI $133.6 $ 48 $ 133.6

Retained Earnings
Retained earnings— Pan $360 $ 360
Retained earnings— Saf $ 68 b 68
Controlling share of NI 133.6 48 133.6
Dividends 100* 32* a 24
f 8 100*
Retained earnings
December 31 $393.6 $ 84 $ 393.6

Balance Sheet
Cash $ 106 $ 30 $ 136
Accounts receivable 172 40 212
Dividends receivable
from Saf 12 e 12
Inventories 190 20 210
Note receivable from Pan 10 d 10
Land 130 60 190
Buildings— net 340 160 500
Equipment— net 260 100 360
Investment in Saf 363.6 a 3.6
b 360
Patents b 112 c 11.2 100.8
$1,573.6 $420 $1,708.8

Accounts payable $ 170 $ 20 $ 190

Note payable to Saf 10 d 10
Dividends payable 16 e 12 4
Capital stock, $10 par 1,000 300 b 300 1,000
Retained earnings 393.6 84 393.6
$1,573.6 $420
Noncontrolling interest January 1 b 120
Noncontrolling interest December 31 f 1.2 121.2
550 550 $1,708.8

Saf’s value at acquisition

Book value at December 31, 2011 $384
Less: 2011 Net income (48)
Add: 2011 Dividends 32
Book value on January 1, 2011 $368
Fair value of patents 112
Saf’s fair value on January 1, 2011 $480

Purchase price (fair value) of Pan’s 75% share $360

Noncontrolling interest (25%) $120

Saf,s Adjusted Income

Saf’s net income $ 48
Less: Amortization of Patents (11.2)
Saf’s adjusted income $ 36.8
Pan’s 75% share $ 27.6
Noncontrolling interest 25% share $ 9.2
P4-4
Pal Corporation acquired a 75 percent interest in Sun Corporation on January 1, 2011,
for $360,000 in cash. Financial statements of Pal and Sun Corporations for 2011 are as
follows (in thousands):

Pal Sun
Combined Income and Retained Earnings
Statements for the Year Ended December 31
Sales $800 $200
Income from Sun 36 —
Cost of sales (500) (100)
Other expenses (194) (52)
Net income 142 48
Add: Retained earnings January 1 360 68
Deduct: Dividends (100) (32)
Retained earnings December 31 $402 $ 84
Balance Sheet at December 31
Cash $ 118 $ 30
Accounts receivable—net 160 40
Dividends receivable from Sun 12 —
Inventories 190 20
Note receivable from Pal — 10
Land 130 60
Buildings—net 340 160
Equipment—net 260 100
Investment in Sun 372 —
Total assets $1,582 $420
Accounts payable $ 170 $ 20
Note payable to Sun 10 —
Dividends payable — 16
Capital stock, $10 par 1,000 300
Retained earnings 402 84
Total equities $1,582 $420

REQUIRED: Prepare consolidation workpapers for Pal Corporation and Subsidiary

for the year ended December 31, 2011. Only the information provided in the financial
statements is available; accordingly, your solution will require some standard
assumptions.
Answer
Sun’s value at acquisition:
Adjustments and Consolidated
Book value at December 31, 2011 $384
Pal Sun 75% Eliminations Statements
Income Statement
Sales $800 $200 $1,000
Income from Sun 36 a 36
Cost of sales 500* 100* 600*
Other expenses 194* 52* 246*
Consolidated NI $ 154
Noncontrolling share c 12 12*
Controlling share of NI $142 $ 48 $ 142

Retained Earnings
Retained earnings— Pal $360 $360
Retained earnings— Sun $ 68 b 68
Controlling share of NI 142 48 142
Dividends 100* 32* a 24
c 8 100*
Retained earnings – Dec 31 $402 $ 84 $402

Balance Sheet
Cash $ 118 $ 30 $ 148
Accounts receivable 160 40 200
Dividends receivable
from Sun 12 e 12
Inventories 190 20 210
Note receivable from Pal 10 d 10
Land 130 60 190
Buildings— net 340 160 500
Equipment— net 260 100 360
Investment in Sun 372 a 12
b 360
Goodwill b 112 112
$1,582 $420 $1,720

Accounts payable $ 170 $ 20 $ 190

Note payable to Sun 10 d 10
Dividends payable 16 e 12 4
Capital stock, $10 par 1,000 300 b 300 1,000
Retained earnings 402 84 402
$1,582 $420
Noncontrolling interest January 1 b 120
Noncontrolling interest December 31 c 4 124
550 550 $1,720
 Less: 2011 Net income (48)
Add: 2011 Dividends 32
Book value on January 1, 2011 $368

Purchase price of Pal’s 75% share $360

Implied fair value of Sun ($360 / 75%) $480
Sun’s book value 368
Excess allocated to Goodwill $112
Noncontrolling interest (25% x $480) $120

Sun’s Adjusted Income

Saf’s net income $48
Less: Amortization of Goodwill (0)
Sun’s adjusted income $48
Pal’s 75% share $36
Noncontrolling interest 25% share $12
P4-5
Par Corporation acquired a 70 percent interest in Sul Corporation’s outstanding voting
common stock on January 1, 2011, for $490,000 cash. The stockholders’ equity (book
value) of Sul on this date con- sisted of $500,000 capital stock and $100,000 retained
earnings. The differences between the fair value of Sul and the book value of Sul were
assigned $5,000 to Sul’s undervalued inventory, $14,000 to undervalued buildings,
$21,000 to undervalued equipment, and $40,000 to previously unrecorded pat- ents. Any
remaining excess is goodwill.

The undervalued inventory items were sold during 2011, and the undervalued
buildings and equipment had remaining useful lives of seven years and three years,
respectively. The patents have a 40-year life. Depreciation is straight line.
At December 31, 2011, Sul’s accounts payable include $10,000 owed to Par. This
$10,000 account payable is due on January 15, 2012. Separate financial statements for
Par and Sul for 2011 are summarized as follows (in thousands):

Par Sul
Combined Income and Retained Earnings
Statements for the Year Ended December 31

Sales $ 800 $700

Income from Sul 59.5 —
Cost of sales (300) (400)
Depreciation expense (154) (60)
Other expenses (160) (140)
Net income 245.5 100
Add: Retained earnings January 1 300 100
Deduct: Dividends (200) (50)
Retained earnings December 31 $ 345.5 $150
Balance Sheet at December 31
Cash $ 86 $ 60
Accounts receivable—net 100 70
Dividends receivable 14 —
Inventories 150 100
Other current assets 70 30
Land 50 100
Buildings—net 140 160
Equipment—net 570 330
Investment in Sul 514.5 —
 Total assets $1,694.5 $850
Accounts payable $ 200 $ 85
Dividends payable 100 20
Other liabilities 49 95
Capital stock, $10 par 1,000 500
Retained earnings 345.5 150
Total equities $1,694.5 $850

REQUIRED: Prepare consolidation workpapers for Par Corporation and Subsidiary

for the year ended December 31, 2011. Use an unamortized excess account.

Answer

Allocation of excess fair value over book value

Cost of 70% interest January 1 $490,000

Implied fair value of Sul ($490,000 / 70%) $700,000
Book value of Sul (600,000)
Excess fair value over book value $100,000
Noncontrolling interest – 30% of fair value at acquisition $210,000
Excess allocated
Undervalued inventory items sold in 2011 $ 5,000
Undervalued buildings (7 year life) 14,000
Undervalued equipment (3 year life) 21,000
Patents 40,000
Remainder to Goodwill 20,000
Excess fair value over book value $100,000
Calculation of income from Sul
Sul’s net income $100,000
Less: Undervalued inventories sold in 2011 (5,000)
Less: Additional Depreciation on building ($14,000/7 years) (2,000)
Less: Additional Depreciation on equipment ($21,000/3 years) (7,000)
Less: Patent amortization ($40,000/40 years) (1,000)
Sul’s adjusted income $ 85,000
Par’s 70% controlling interest share $ 59,500
Noncontrolling interest’s 30% share $ 25,500
Workpaper entries for 2011

a Income from Sul 59,500

Dividends (Sul) 35,000
Investment in Sul 24,500

b Capital stock (Sul) 500,000

Retained earnings (Sul) January 1 100,000
Unamortized excess 100,000
Investment in Sul 490,000
Noncontrolling interest January 1 210,000
c Cost of sales (for inventory items) 5,000
Buildings— net 14,000
Equipment— net 21,000
Patents 40,000
Goodwill 20,000
Unamortized excess 100,000
d Depreciation expense 2,000
Buildings— net 2,000

e Depreciation expense 7,000

Equipment— net 7,000

f Other expenses 1,000

Patents 1,000
g Accounts payable 10,000
Accounts receivable 10,000
h Dividends payable 14,000
Dividends receivable 14,000
i Noncontrolling Interest Share 25,500
Dividends— Sul 15,000
Noncontrolling Interest 10,500
 Adjustments and Consolidated
Par Sul 70% Eliminations Statements
Income Statement
Sales $ 800 $ 700 $1,500
Income from Sul 59.5 a 59.5
Cost of sales 300* 400* c 5 705*
Depreciation expense 154* 60* d 2 223*
e 7
Other expenses 160* 140* f 1 301*
Consolidated NI $ 271
Noncontrolling share i 25.5 25.5*
Controlling share of NI $ 245.5 $ 100 $ 245.5

Retained Earnings
Retained earnings— Par $ 300 $ 300
Retained earnings— Sul $ 100 b 100
Net income 245.5 100 245.5
Dividends 200* 50* a 35
i 15 200*
Retained earnings – Dec 31 $ 345.5 $ 150 $ 345.5
Balance Sheet
Cash $ 86 $ 60 $ 146
Accounts receivable 100 70 g 10 160
Dividends receivable 14 h 14
Inventories 150 100 250
Other current assets 70 30 100
Land 50 100 150
Buildings— net 140 160 c 14 d 2 312
Equipment— net 570 330 c 21 e 7 914
Investment in Sul 514.5 a 24.5
b 490
Patents c 40 f 1 39
Goodwill c 20 20
Unamortized excess b 100 c 100
$1,694.5 $ 850 $2,091

Accounts payable $ 200 $ 85 g 10 $ 275

Dividends payable 100 20 h 14 106
Other liabilities 49 95 144
Capital stock, $10 par 1,000 500 b 500 1,000
Retained earnings 345.5 150 345.5
$1,694.5 $ 850
Noncontrolling interest January 1 b 210
Noncontrolling interest December 31 i 10.5 220.5
919 919 $2,091
P4-6
Separate company financial statements for Pen Corporation and its subsidiary, Syn
Company, at and for the year ended December 31, 2012, are summarized as follows (in
thousands):

Pen Syn
Combined Income and Retained Earnings
Statements for the Year Ended December
31
Sales $400 $100
Income from Syn 18 —
Cost of sales (250) (50)
Expenses (100.6) (26)
Net income 67.4 24
Add: Retained earnings January 1 177 34
Deduct: Dividends (50) (16)
Retained earnings December 31 $194.4 $ 42
Balance Sheet at December 31
Cash $ 18 $ 15
Accounts receivable—net 80 20
Dividends receivable from Syn 7.2 —
Note receivable from Pen — 5
Inventory 95 10
Investment in Syn 219.6 —
Land 65 30
Buildings—net 170 80
Equipment—net 130 50
Total assets $784.8 $210
Accounts payable $ 10
$ 85.4
Note payable to Syn 5 —
Dividends payable — 8
Capital stock, $10 par 500 150
Retained earnings 194.4 42
Total equities $784.8 $210

Additional Information :

1. Pen Corporation acquired 13,500 shares of Syn Company stock for $15 per share
on January 1, 2011, when Syn’s stockholders’ equity consisted of $150,000 capital
stock and $15,000 retained earnings.

2. Syn Company’s land was undervalued when Pen acquired its interest, and
accordingly, $20,000 of the fair value/book value differential was assigned to land.
Any remaining differential is assigned to unrecorded patents with a 10-year remaining
life.

3. Syn Company owes Pen $5,000 on account, and Pen owes Syn $5,000 on a note
payable.
REQUIRED: Prepare consolidated workpapers for Pen Corporation and Subsidiary
for the year ended December 31, 2012.

Answer
Ownership percentage 13,500/15,000 shares = 90%
Investment cost (13,500 shares $15) $202,500
Implied fair value of Syn ($202,500 / 90%) $225,000
Book value of Syn 165,000
Excess fair value over book value $ 60,000
Excess allocated to
Land $ 20,000
Remainder to patents 40,000
Excess fair value over book value $ 60,000
Income from Syn
Syn’s reported net income $ 24,000
Less: Patent amortization (4,000)
Syn’s adjusted income $ 20,000
Pen’s share of Syn’s income (90%) $ 18,000
Noncontrolling interest share (10%) $ 2,000
Investment in Syn December 31, 2012
Cost January 1, 2011 $202,500
Pen’s share of the change in Syn’s retained earnings
($42,000 - $15,000) 90% 24,300
Less: Pen’s share (90%) of Patent amortization for 2 years (7,200)
Investment in Syn December 31 $219,600

Adjustments and Consolidated

Pen 90% Syn Eliminations Statements
Income Statement
Sales $ 400 $ 100 $ 500
Income from Syn 18 a 18
Cost of sales 250* 50* 300*
Other expenses 100.6* 26* c 4 130.6*
Consolidated NI $ 69.4
Noncontrolling share g 2 2*
Controlling share of NI $ 67.4 $ 24 $ 67.4

Retained Earnings
Retained earnings— Pen $ 177 $ 177
Retained earnings— Syn $ 34 b 34
Net income 67.4 24 67.4
Dividends 50* 16* a 14.4
g 1.6 50*
Retained earnings – Dec 31 $ 194.4 $ 42 $ 194.4

Balance Sheet
Cash $ 18 $ 15 $ 33
Accounts receivable 80 20 f 5 95
Dividends receivable--Syn 7.2 d 7.2
Inventories 95 10 105
Note receivable— Pen 5 e 5
Investment in Syn 219.6 a 3.6
b 216
Land 65 30 b 20 115
Buildings— net 170 80 250
Equipment— net 130 50 180
Patents b 36 c 4 32
$ 784.8 $ 210 $ 810
Accounts payable $ 85.4 $ 10 f 5 $ 90.4
Note payable to Syn 5 e 5
Dividends payable 8 d 7.2 .8
Capital stock 500 150 b 150 500
Retained earnings 194.4 42 194.4
$ 784.8 $ 210
Noncontrolling interest January 1 b 24
Noncontrolling interest December 31 g .4 24.4
281.2 281.2 $ 810
P4-7

Par Corporation acquired a 70 percent interest in Sol Corporation’s outstanding voting

common stock on January 1, 2011, for $490,000 cash. The stockholders’ equity of Sol
on this date consisted of
$500,000 capital stock and $100,000 retained earnings. The difference between the
fair value of Sol and the underlying equity acquired in Sol was assigned $5,000 to
Sol’s undervalued inventory, $14,000 to undervalued buildings, $21,000 to
undervalued equipment, and $60,000 to goodwill.

The undervalued inventory items were sold during 2011, and the undervalued
buildings and equipment had remaining useful lives of seven years and three years,
respectively. Depreciation is straight line.
At December 31, 2011, Sol’s accounts payable include $10,000 owed to Par. This
$10,000 account payable is due on January 15, 2012. Par sold equipment with a book
value of $15,000 for
$25,000 on June 1, 2011. This is not an intercompany sale transaction. Separate
financial state- ments for Par and Sol for 2011 are summarized as follows (in
thousands):
Par Sol
Combined Income and Retained Earnings
Statements for the Year Ended December
31
Sales $ 800 $700
Income from Sol 60.2 —
Gain on equipment 10 —
Cost of sales (300) (400)
Depreciation expense (155) (60)
Other expenses (160) (140)
Net income 255.2 100
Add: Retained earnings January 1 300 100
Deduct: Dividends (200) (50)
Retained earnings December 31 $ 355.2 $150
Balance Sheet at December 31
Cash $ 96 $ 60
Accounts receivable—net 100 70
Dividends receivable 14 —
Inventories 150 100
Other current assets 70 30
Land 50 100
Buildings—net 140 160
 Equipment—net 570 330
Investment in Sol 515.2 —
Total assets $1,705.2 $850
Accounts payable $ 200 $ 85
Dividends payable 100 20
Other liabilities 50 95
Capital stock, $10 par 1,000 500
Retained earnings 355.2 150
Total equities $1,705.2 $850
Par Sol
Combined Income and Retained Earnings
Statements for the Year Ended December
31
Sales $ 800 $700
Income from Sol 60.2 —
Gain on equipment 10 —
Cost of sales (300) (400)
Depreciation expense (155) (60)
Other expenses (160) (140)
Net income 255.2 100
Add: Retained earnings January 1 300 100
Deduct: Dividends (200) (50)
Retained earnings December 31 $ 355.2 $150
Balance Sheet at December 31
Cash $ 96 $ 60
Accounts receivable—net 100 70
Dividends receivable 14 —
Inventories 150 100
Other current assets 70 30
Land 50 100
Buildings—net 140 160
Equipment—net 570 330
Investment in Sol 515.2 —
Total assets $1,705.2 $850
Accounts payable $ 200 $ 85
Dividends payable 100 20
Other liabilities 50 95
Capital stock, $10 par 1,000 500
Retained earnings 355.2 150
Total equities $1,705.2 $850
REQUIRED: Prepare consolidation workpapers for Par Corporation and Sol for the
year ended December 31, 2011. Use an unamortized excess account.
Answer

Allocation of excess fair value over book value

Cost of 70% interest January 1 $490,000
Implied fair value of Sol ($490,000 / 70%) $700,000
Book value of Sol (600,000)
Excess fair value over book value $100,000

Excess allocated
Undervalued inventory items sold in 2011 $ 5,000
Undervalued buildings (7 year life) 14,000
Undervalued equipment (3 year life) 21,000
Remainder to goodwill 60,000
Excess fair value over book value $100,000
Calculation of income from Sol
Sol’s reported net income $100,000
Less: Undervalued inventories sold in 2011 (5,000)
Less: Depreciation on building ($14,000/7 years) (2,000)
Less: Depreciation on equipment ($21,000/3 years) (7,000)
Adjusted income from Soul $ 86,000
Par’s 70% controlling share $ 60,200
30% Noncontrolling interest share $ 25,800
Workpaper entries for 2011
a Income from Sol 60,200
Dividends (Sol) 35,000
Investment in Sol 25,200
b Capital stock (Sol) 500,000
Retained earnings (Sol) - January 1 100,000
Unamortized excess 100,000
Investment in Sol 490,000
Noncontrolling interest - January 1 20,000
c Cost of sales (for inventory items) 5,000
Buildings— net 14,000
Equipment— net 21,000
Goodwill 60,000
Unamortized excess 100,000
d Depreciation expense 2,000
Buildings— net 2,000
e Depreciation expense 7,000
Equipment— net 7,000

f Noncontrolling Interest Share 25,800

Dividends— Sol 15,000
Noncontrolling Interest 10,800
g Accounts payable 10,000
Accounts receivable 10,000
h Dividends payable Dividends 14,000
14,000
 receivable

Adjustments and Consolidated

Par Sol 70% Eliminations Statements
Income Statement
Sales $ 800 $ 700 $1,500
Income from Sol 60.2 a 60.2
Gain on equipment 10 10
Cost of sales 300* 400* c 5 705*
Depreciation expense 155* 60* d 2 224*
e 7
Other expenses 160* 140* 300*
Consolidated NI $ 281
Noncontrolling share f 25.8 25.8*
Controlling share of NI $ 255.2 $ 100 $ 255.2

Retained Earnings
Retained earnings— Par $ 300 $ 300
Retained earnings— Sol $ 100 b 100
Controlling share of NI 255.2 100 255.2
Dividends 200* 50* a 35
f 15 200*
Retained earnings – Dec 31 $ 355.2 $ 150 $ 355.2

Balance Sheet
Cash $ 96 $ 60 $ 156
Accounts receivable 100 70 g 10 160
Dividends receivable 14 h 14
Inventories 150 100 250
Other current assets 70 30 100
Land 50 100 150
Buildings— net 140 160 c 14 d 2 312
Equipment— net 570 330 c 21 e 7 914
Investment in Sol 515.2 a 25.2
b 490
Goodwill c 60 60
Unamortized excess b 100 c 100
$1,705.2 $ 850 $2,102
Accounts payable $ 200 $ 85 g 10 $ 275
Dividends payable 100 20 h 14 106
Other liabilities 50 95 145
Capital stock, $10 par 1,000 500 b 500 1,000
Retained earnings 355.2 150 355.2
$1,705.2 $ 850
Noncontrolling interest January 1 b 210
Noncontrolling interest December 31 f 10.8 220.8
919 919 $2,102