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Unformatted text preview: P4-29 Consolidation Workpaper at End of Second Year of Ownership$128,000 – 100% (60,000 +40,000) = 28,000BVFMV100%lifeAmort.B&E (net)20,000102,000Goodwill8,0005,500Total28,000Balance 1/1/x9 $28,000 – 1($2,000) = $26,000a.Journal entries recorded by Parent(1)Cash20,000Investment in Lake Corporation Stock20,000Record dividends from subsidiary.(2)Investment in Lake Corporation Stock36,000Income from Subsidiary36,000Record equity-method income.(3)Income from Subsidiary2,000Investment in Lake Corporation Stock2,000Amortize differential: $20,000 / 10 yearsa.Eliminating entries:E(1)Income from Subsidiary34,000Dividends Declared20,000Investment in Roller Company Stock14,000Eliminate income from subsidiary.E(2)Common Stock — Roller Company60,000Retained Earnings, January 148,000Differential26,000Investment in Roller Company Stock134,000Eliminate beginning investment balance.E(3)Buildings and Equipment20,000Goodwill2,500Retained Earnings, January 15,500Differential26,000Accumulated Depreciation...
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- Spring '08
- Balance Sheet, Generally Accepted Accounting Principles, Roller Company, Mill Corporation