tock. The balance sheets of the two companies immediately after the Solution acquisition showed the following amounts: Problem Company Solution Dairy Assets Cash & Receivables $ 130,000 $ 70
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Problem Company owns 90 percent of Solution Dairy’s stock. The balance sheets of the two companies immediately after the Solution acquisition showed the following amounts:
| Problem Company | Solution Dairy | |
|---|---|---|
| Assets | ||
| Cash & Receivables | $ 130,000 | $ 70,000 |
| Inventory | 210,000 | 90,000 |
| Land | 70,000 | 40,000 |
| Buildings & Equipment (net) | 390,000 | 220,000 |
| Investment in Solution Dairy | 270,000 | |
| Total Assets | $ 1,070,000 | $ 420,000 |
| Liabilities & |
||
| Current Payables | $ 80,000 | $ 40,000 |
| Long-Term Liabilities | 200,000 | 100,000 |
| Common Stock | 400,000 | 60,000 |
| 390,000 | 220,000 | |
| Total Liabilities & Stockholders’ Equity | $ 1,070,000 | $ 420,000 |
The fair value of the noncontrolling interest at the date of acquisition was determined to be $30,000. The full amount of the increase over book value is assigned to land held by Solution. At the date of acquisition, Solution owed Problem $8,000 plus $900 accrued interest. Solution had recorded the accrued interest, but Problem had not.
Required:
Prepare a consolidated balance sheet worksheet.
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