Following are the separate financial statements for the two companies for the year ending December 31, 2007. Credit balances are indicated by parentheses.
a- How was the $66,000 balance in the Subsidiary Earnings account derived?
b- Prepare a worksheet to consolidate the financial information for these two companies. (I have done most of the work-see attached spreadsheet p3-29 tab)
c- How would Storm's individual financial records fifer if the push-down method of accounting had been applied?.
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