P Corporation Acquired 80% of S Corporation on January 1

question 20

Essay

P Corporation acquired 80% of S Corporation on January 1, 2017 for $240,000 cash when S's stockholders' equity consisted of $100,000 of Common Stock and $30,000 of Retained Earnings. The difference between the price paid by P and the underlying equity acquired in S was allocated solely to a patent amortized over 10 years.
P sold merchandise to S during the year in the amount of $30,000. $10,000 worth of inventory is still on hand at the end of the year with an unrealized profit of $4,000. The separate company statements for P and S appear in the first two columns of the partially completed consolidated workpaper.
Required:
Complete the consolidated workpaper for P and S for the year 2017.
P Corporation and Subsidiary
Consolidated Statements Workpaper December 31, 2017

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Definitions:

Basic Scents

Fundamental or primary odors that are universally recognized, such as floral, fruity, woody, and spicy, which form the basis of our sense of smell.

Organ of Corti

A structure located in the cochlea of the inner ear, containing hair cells that act as sensory receptors for sound.

Retina

The light-sensitive layer of tissue at the back of the inner eye, which converts light images into nerve signals sent to the brain.

Umami

One of the five basic tastes, often described as savory or meaty, and is attributed to the presence of glutamates in food.