38200332 - Yohannes Wibowo

Investment cost 2,700,000

Implied fair value cost 3,000,000 90%
Less : Book value of sun 2,500,000
Patents 500,000

Patent amortization (10 years) 50,000 /years

Upstream sales
Unrealized profit, December 31, 2016 80,000
Unrealized profit, December 31, 2017 120,000

Income from Sun

Sun's reported net income 1,000,000
Less : Patent amortization - 50,000
Less : Unrealized profit in EI - 120,000
Add : Unrealize profit in BI 80,000
Sun's adjusted and realized income 910,000

Pam's 90% CI share of Sun's income 819,000

10% NCI share of Sun's income 91,000

Investment balance
Beginning investment cost 2,700,000
Increase in Sun's net asset :
December 31, 2015 2,500,000
December 31, 2017 3,200,000 630,000
Patent amortization (2 years) - 90,000
Unrealized profit December 31, 2017 - 108,000
Investment balance December 31, 2017 3,132,000
 Pam Corporation and Subsidiary
Consolidation Workpapers
For The Year Ended December 31, 2017
Pam Sun 90% Adjustment and Elimination

Income Statement
Sales 8,190,000 5,600,000 5,600,000
Income from Sun 819,000 819,000
Cost of sales - 5,460,000 - 4,000,000 120,000 5,600,000
80,000
Other expenses - 1,544,000 - 600,000 50,000
Consolidated net income
NCI share 91,000
CI share of NI 2,005,000 1,000,000

Retained Earnings
Retained earnings - Pam 1,200,000
Retained earnings - Sun 700,000 700,000
CI share of NI 2,005,000 1,000,000
Dividends - 1,000,000 - 500,000 450,000
50,000
Retained Earnings - Dec 31 2,205,000 1,200,000

Balance Sheet
Cash 753,000 500,000
Inventory 420,000 800,000 120,000
Other current assets 600,000 200,000 100,000
Plant assets - net 3,000,000 3,000,000
Investment in Sun 3,132,000 72,000 369,000
2,835,000
Patent 450,000 50,000
7,905,000 4,500,000

Current Liabilities 1,700,000 1,300,000 100,000

Capital Stock 4,000,000 2,000,000 2,000,000
Retained earnings 2,205,000 1,200,000
7,905,000 4,500,000

Noncontrolling interest January 1 8,000 315,000

Noncontrolling interest December 31 41,000
 Consolidated
Statements

8,190,000
-
- 3,900,000

- 2,194,000
2,096,000
- 91,000
2,005,000

1,200,000
-
2,005,000
- 1,000,000

2,205,000

1,253,000
1,100,000
700,000
6,000,000
-

400,000
9,453,000

2,900,000
4,000,000
2,205,000

348,000
9,453,000