On January 1, 2020, Pail Corporation acquired 75 percent of Sand Company's common stock for $525,000 cash. The fair value of the noncontrolling interest at that date was determined to be $175,000. At the date of the business combination, the book values of Sand's net assets and liabilities approximated fair value except for depreciable plant assets, which were UNDERvalued by $4000 and Inventory, which was OVERvalued by $4500 The remaining useful life of the plant assets was set at 10 years. For the year ended December 31, 2020, Pail reported Depreciation Expense of $15000 on its general ledger. Sand reported Depreciation Expense of $9000 on its general ledger. What amount of Depreciation Expense should be reported on the 12/31/20 consolidated Income Statement?

Parson Company acquired an 80 percent interest in Syber Company on January 1, 2020. Any portion of Syber's business fair value in excess of its corresponding book value was assigned to trademarks. This intangible asset has subsequently undergone annual amortization based on a 15-year life. Over the past two years, regular intra-entity inventory sales transpired between the two companies. No payment has yet been made on the latest transfer. All dividends are paid in the same period as declared.   The individual financial statements for the two companies as well as consolidated totals for 2021 follow (credit balances indicated by parentheses):     ParsonCompany   SyberCompany   ConsolidatedTotals Sales $ (744,000 )   $ (654,000 )   $ (1,223,000 ) Cost of goods sold   450,000       412,000       691,000   Operating expenses   104,000       107,000       213,300   Income of Syber   (102,960 )     0       0   Separate company net income $ (292,960 )   $ (135,000 )…

Placid Lake Corporation acquired 80 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2020, when Scenic had a net book value of $630,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $6,000 per year.   Placid Lake's 2021 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $530,000. Scenic reported net income of $340,000. Placid Lake declared $160,000 in dividends during this period; Scenic paid $63,000. At the end of 2021, selected figures from the two companies' balance sheets were as follows:     Placid Lake Scenic Inventory $ 370,000   $ 113,000   Land   830,000     430,000   Equipment (net)   630,000     530,000       During 2020, intra-entity sales of $190,000 (original cost of $88,000) were made. Only 20 percent of this inventory was still held within the consolidated entity at the end of 2020. In 2021, $320,000 in intra-entity sales were made…

On December 31, Phoenix Corporation acquired all of Sedona Corporation’s voting stock in exchange for $560,000 cash. At the acquisition date, the fair values of Sedona’s assets and liabilities equaled their carrying values, except that the fair value of the inventory was $20,000 lower than the carrying value, the fair value of the equipment was $50,000 higher than the carrying value, and the fair value of the long-term debt was $4,000 lower than the carrying value.   The separate condensed balance sheets of the two companies immediately after the acquisition (on 12/31) are as follows:                                                                                  Phoenix   Sedona          Cash                                                            $ 90,000   $   60,000          Accounts receivable                                    130,000   25,000          Inventory                                                    160,000   70,000          Plant and equipment (net)…

Parent Corporation purchased 80% of the stock of Sub Inc. on January 1, 2019 for $208,000, which reflected 80% of Sub’s total fair value. At that date, Sub had common stock of $120,000 and retained earnings of $80,000. Fair values equaled book values of Sub’s net assets except for the fair value of Sub’s buildings and equipment which was $24,000 greater than book value (remaining useful life of 8 years).   Sub reported net income of $40,000 and dividends declared of $12,500 for 2021.   At January 1, 2021, Sub reported Retained Earnings of $135,000. At December 31, 2021, Parent Corporation reported balances of: Income from Subsidiary, $29,600; Investment in Subsidiary, $266,800. There have been no goodwill impairments to date.   Required: Prepare the December 31, 2021 consolidation adjusting and eliminating entries in general journal format.