P Corporation paid $420,000 for 70% of S Corporation's $10 par common stock on December 31, 2011, when S Corporation's stockholders' equity was made up of $300,000 of Common Stock, $90,000 of Other Contributed Capital and $60,000 of Retained Earnings. S's identifiable assets and liabilities reflected their fair values on December 31, 2011, except for S's inventory which was undervalued by $60,000 and their land which was undervalued by $25,000. Balance sheets for P and S immediately after the business combination are presented in the partially completed work-paper below.
Eliminations
P S Debit Credit Noncontrolling Interest Consolidated Balances
ASSETS
Cash $40,000 $30,000
Accounts
receivable-net 30,000 45,000
Inventories 185,000 165,000
Land 45,000 120,000
Plant assets-
net 480,000 240,000
Investment in
S Corp. 420,000
Difference between implied and book value
Goodwill
Total Assets $1,200,000 $600,000
EQUITIES
Current
liabilities $170,000 $150,000
Capital stock 600,000 300,000
Additional paid-in capital 150,000 90,000
Retained earnings 280,000 60,000
Noncontrolling interest
Total Equities $1,200,000 $600,000
Required:
Complete the consolidated balance sheet workpaper for P Corporation and Subsidiary.