Pruin Corporation Acquired All of the Voting Stock of Satto

question 33

Essay

Pruin Corporation acquired all of the voting stock of Satto Corporation on January 1,2016,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 2016,$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 31,2017 (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 31,2017.
Pruin Corporation and Satto Corporation
Consolidated Statements Workpaper
at December 31,2017

---

Definitions:

Slip Spline Assembly

A mechanism in driveshafts that allows for length variation due to suspension movement, ensuring smooth power transmission.

Lubricant

A substance applied between two surfaces to reduce friction and wear.

Hanger Bearing

The center support bearing used to suspend the first section of the drive shaft in a double drive shaft assembly; used on truck drivelines when the distance between the transmission and drive carrier exceeds 70 inches (178 mm) or so. Consists of a sealed rolling element bearing that is supported by a rubber insulator and mounted in a bracket assembly. Also known as center support bearing.

Factory Lubricated

Refers to components that are pre-lubricated during manufacturing, reducing the need for initial maintenance.