Pruin Corporation Acquired All of the Voting Stock of Satto

question 9

Essay

Pruin Corporation acquired all of the voting stock of Satto Corporation on January 1, 2013, for $210,000 when Satto had common stock of $150,000 and retained earnings of $24,000.The excess of implied over book value was allocated $9,000 to inventories that were sold in 2013, $12,000 to equipment with a 4-year remaining useful life under the straight-line method, and the remainder to goodwill.
Financial statements for Pruitt and Satto Corporations at the end of the fiscal year ended December 31, 2014 (two years after acquisition), appear in the first two columns of the partially completed consolidated statements workpaper.Pruin Corp.has accounted for its investment in Satto using the partial equity method of accounting.
Required:
Complete the consolidated statements workpaper for Pruin Corporation and Satto Corporation for December 31, 2014.
Pruin Corporation and Satto Corporation
Consolidated Statements Workpaper
at December 31, 2014

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Definitions:

CPI

Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

Ratio

A quantitative relationship between two numbers, showing how many times one value contains or is contained within the other.

Smallest Term

The term in a mathematical expression or equation that has the lowest degree, or in a sequence or series, the term with the least value.

Express

To convey a thought or feeling in words or by gestures and conduct.