Tugas13
On December 31, 20X2 Pennyvale Corporation purchased 80% of the stock of
Sutherland Sales Company at book value. The data reported on their separate balance
sheets immediately after the acquisition follow. At December 31, 20X2 Pennyvale
Corporation owes Sutherland Sales $5,000 on accounts payable.
Pennyvale
Sutherland
Corporation
Sales
$ 32,000
$ 18,000
45,000
34,000
Inventories
143,000
56,000
Investment in Sutherland
200,000
Equipment-net
380,000
175,000
$800,000
$283,000
$ 40,000
$ 33,000
Common stock, $10 par
460,000
150,000
Retained earnings
300,000
100,000
$800,000
$283,000
Assets
Cash
Accounts receivable
Liabilities and Stockholders' Equity
Accounts payable
Required
1. Prepare a consolidated balance sheet for Pennyvale Corporation and Subsidiary at
December 31, 20X2.
2. Compute consolidated net income for 20x3 assuming that Pennyvale Corporation
reported separate income of $170,000 and Sutherland Sales Company reported net
income of $90,000. (Separate income does not include income from the
investment in Sutherland Sales.)