P5-36 - P5-36 Consolidation Workpaper at End of First Year...

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Unformatted text preview: P5-36 Consolidation Workpaper at End of First Year of Ownershipa. Eliminating entries:E(1)Income from Subsidiary16,500Dividends Declared12,000Investment in Best Company Stock4,500Eliminate income from subsidiary.E(2)Income to Noncontrolling Interest6,000Dividends Declared4,000Noncontrolling Interest2,000Assign income to noncontrolling interest.E(3)Common Stock Best Company60,000Retained Earnings, January 140,000Differential21,000Investment in Best Company Stock96,000Noncontrolling Interest25,000Eliminate beginning investment balance.E(4)Buildings and Equipment15,000Goodwill6,000Differential21,000Assign beginning differential.E(5)Depreciation Expense1,500Accumulated Depreciation1,500Amortize differential:$1,500 = $15,000 / 10 yearsE(6)Goodwill Impairment Loss3,500Goodwill3,500Write down goodwill for impairment.b.Power Corporation and Best CompanyConsolidation Workpaper December 31, 20X8PowerBestEliminationsConsol-ItemCorp. Co.DebitCreditidatedSales260,000 180,000 440,000 Income from Subsidiary...
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P5-36 - P5-36 Consolidation Workpaper at End of First Year...

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