Elimination Entries

Dividends Income 16,000 Accumulated Depreciation

NCI 4,000
Dividends Declared 20,000 (15,000/ 5 yrs.)
# #
Inventory 12,500 NCI in CI of Subsidiary
Buildings and equipment 25,000
Goodwill 12,500 (105,000 + 10,000 - 5,000 - 6,250) * 20%
Common Stock 100,000 #
Retained Earnings, beg. 100,000 Accumulated Depreciation
Investment in S Company 200,000 Retained Earnings, beg.
NCI 50,000
# #
Retained Earnings, beg. 18,750
Depreciation Expense - equipment 6,250
Inventory 12,500
Accumulated Depreciation 12,500
#
Retained Earnings, beg. 6,250
NCI 6,250
(50,000 - 12,500 - 6,250) *20%
#
Sales 40,000
Cost of goods sold 40,000
#
Retained Earnings, beg. 8,000
NCI 2,000
Cost of goods sold 10,000
#
Cost of goods sold 5,000
Inventory 5,000
#
cumulated Depreciation 3,000
Depreciation Expense 3,000
5,000/ 5 yrs.)

I in CI of Subsidiary 20,750
NCI 20,750
05,000 + 10,000 - 5,000 - 6,250) * 20%

cumulated Depreciation 3,000

tained Earnings, beg. 12,000
Buildings and Equipment 15,000
 Selling Price Cost Gross Profit Per Books Consolidated Adjustments
Inventory, beg. 50,000.00 40,000.00 10,000.00 Equipment 80,000.00 30,000.00 50,000.00
Sales 160,000.00 112,000.00 48,000.00 Accum. Depreciation (48,000.00) (18,000.00) (30,000.00)
Inventory, end (40,000.00) (28,000.00) (12,000.00) Depr. Exp. 16,000.00 6,000.00 10,000.00
COGS 170,000.00 124,000.00 46,000.00
RE Effect, 1/1/13 30,000.00

D&A Schedule
Fair Value Parent NCI
FV of Subsidiary 620,000.00 372,000.00 248,000.00
BV of interest (350,000.00) (210,000.00) (140,000.00)
Excess 270,000.00 162,000.00 108,000.00
Patent (120,000.00) (72,000.00) (48,000.00)
Goodwill 150,000.00 90,000.00 60,000.00