Reference no: EM132476208
Question 1: Preparation of Consolidated Balance Sheet Greene Company purchased 60 percent of White Corporation's voting shares on June 3, 2012, at book value. At that date, the fair value of the noncontrolling interest was equal to 40 percent of the book value of White Corporation. The companies' permanent accounts on December 31, 2017, contained the following balances:
Greene Company White Corporation
Cash and Receivables $101,000 $20,000
Inventory 80,000 40,000
Land 150,000 90,000
Buildings & Equipment 400,000 300,000
Investment in White Corporation Stock 141,000 ________ $ 872,000 $ 450,000
Accumulated Depreciation $135,000 $85,000
Accounts Payable 90,000 25,000
Notes Payable 200,000 90,000
Common Stock 100,000 200,000
Retained Earnings 347,000 50,000
$872,000 $450,000
On January 1, 2013, Greene paid $100,000 for equipment with a 10-year expected total economic life. The equipment was depreciated on a straight-line basis with no residual value. White purchased the equipment from Greene on December 31, 2015, for $91,000. Assume White did not change the remaining estimated useful life of the equipment. White sold land it had purchased for $30,000 on February 23, 2015, to Greene for $20,000 on October 14, 2016. Assume Greene uses the fully adjusted equity method.
Required
1. consolidated balance sheet worksheet in good form as of December 31, 2017.
2. consolidated balance sheet as of December 31, 2017.
Worksheet:
Consolidation Entries Greene Company White Corporation Dr Cr Consolidated
Cash and Receivables $101,000 $20,000
Inventory 80,000 40,000
Land 150,000 90,000
Buildings & Equipment 400,000 300,000
Accumulated Depreciation (135,000) (85,000)
Investment in White Corporation Stock 141,000
Total Assets $ 737,000 $ 365,000 $0 $0 $0
Accounts Payable 90,000 25,000
Notes Payable 200,000 90,000
Common Stock 100,000 200,000
Retained Earnings 347,000 50,000
NCI in NA of White Corporation Total Liabilities & Equity $737,000 $365,000 $0 $0 $0