DESCRIPTION

INCOME STATEMENT
Sales
Dividend income

P COMPANY

ELIMINATION
DEBIT
CREDIT

S COMPANY

$
$

4,000,000
60,000

$
$

2,530,000
-

Total Revenue
Cos of Good Sold
Depreciation - Equipment
Other Expenses

4,060,000

$
$
$

2,310,000
120,000
1,000,000

$
$
$

Total Cost and Expenses

Consolidated Net Income
Non Controlling Interest in Income

3,430,000

$
$

630,000
-

$
$

Net income to retained earnings

630,000

200,000

RETAINED EARNINGS
1/1 Retained Earnings
P Company

2,077,000

630,000

(150,000)

S Company
Net income from above
Dividend Declared
P Company
S Company
31/12 Retained Earnings
BALANCE SHEET
Investment in S Company
Difference between implied and book value
Land
Equipment (Net)
Other Assets (Net)
Goodwill (Excess IV over BV)
Total
Liabilities
Common Stocks
P Company
S Company
Retained Earning from above
1/1 Non Controlling interest in net asset

Description
Purchase Price & Implied Value
(-) Net Asset Acquired
Common Stock
Retained Earnings
Excess Implied Value over Book Value
Assigned to :
Inventory
Equipment
Land
Distributed to Goodwill

CONSOLIDATED
BALANCE SHEET
$
$

6,530,000
-

2,530,000

6,530,000

1,600,000
30,000
700,000

$
$
$

3,910,000
180,000
1,700,000

2,330,000

5,790,000

200,000
-

$
$

740,000
(34,000)

706,000

2,121,000

$
$

706,000

$
(15,000) $
19,000 $

(150,000)
2,677,000

$
$
$
$
$
$

2,800,000
1,260,000
4,217,000
230,000

$
$

685,000
200,000

(75,000)

810,000

60,000

30,000

$
$
$
$

40,000
16,000
48,000
685,000

34,000

148,000

60,000

2,557,000

2,200,000

$
$
$
$

2,400,000
840,000
1,872,000
-

$
$
$
$

250,000
210,000
2,345,000
-

7,312,000

2,805,000

8,507,000

1,755,000

495,000

2,250,000

3,000,000
$
$

1,500,000
810,000

$
$
$

3,000,000
2,677,000

2,557,000

$
$
$
$

148,000
750,000
150,000
300,000

$
$

2,348,000
750,000

90,000

250,000

20,000

1,500,000

$
$
$

12,000
10,000
4,000

31/21 Non Controlling interest in net assets

Total

NON CONTROLLING
INTEREST

7,312,000

2,805,000

P Company
2,348,000

587,000

Total
2,935,000

$
$

1,200,000
548,000

$
$

300,000
137,000

$
$

1,500,000
685,000

1,748,000

437,000

2,185,000

600,000

150,000

750,000

NCI

$
$
$

(40,000) $
(240,000) $
(120,000) $

(10,000) $
(60,000) $
(30,000) $

(50,000)
(300,000)
(150,000)

$
$

200,000 $
(200,000) $

50,000 $
(50,000) $

250,000
(250,000)

587,000

561,000

580,000

580,000

8,507,000