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100%, equity, ending inventory. On Jan 1, 2015 100% of the outstanding stock of Solo Company was purchased by Plato Corporation for $3,300,000.



100%, equity, ending inventory. On Jan 1, 2015 100% of the outstanding stock of Solo Company was purchased by Plato Corporation for $3,300,000. At the time, the book value of Solo's assets equaled $3,000,000. The excess was attributable to equipment with a 10 year life. The following trial balances of Plato Corporation and Solo Company were prepared on Dec 31, 2015: Plato Corp. Solo Comp

Cash................................................... 735,000 370,000

Accounts Receivable........................... 400,000 365,000

Inventory............................................. 600,000 275,000

Property, plant and Equipment(net)...... 4,000,000 2,300,000

Investment in Solo Company.............. 3,510,000

Accounts Payable................................ (35,000) (100,000)

Common Stock ($10 par).................... (1,000,000) (400,000)

Paid-in Capital in Excess of par......... (1,500,000) (200,000)

Retained Earnings, Jan 1, 2015............ (5,500,000) (2,400,000)

Sales................................................... (12,000,000) (1,000,000)

Cost of goods sold............................... 7,000,000 750,000

Other Expenses................................... 4,000,000 40,000 Subsidiary income............................ (210,000) Totals................................................. 0 0

Throughout 2015, sales to Plato Corporation made up 30% of Solo's revenue and produced a 25% gross profit rate. At year end , Plato Corporation had sold $250,000 of the goods purchased from Solo Company and still owed Solo $30,000. None of the Solo products were in Plato's Jan 1, 2015 beginning inventory. Prepare the worksheet necessary to produce the consolidated income statement and balance sheet of Plato Corporation and its subsidiary for the year ended December 31, 2015. Include the value Analysis, determination and distribution of excess schedule and eliminations

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