On January 1, 20X8, Pope Company Acquired 100% of the Common

Essay

On January 1, 20X8, Pope Company acquired 100% of the common stock of Siegel Company for $300,000. On this date Siegel had total owners' equity of $250,000. Any excess of cost over book value is attributable to goodwill. Pope accounts for its investment in Siegel using the simple equity method.
Also on July 1, 20X8, Siegel Company sold to outside investors $200,000 par value of 10-year, 10% bonds. The price received was equal to par. The bonds pay interest semi-annually on July 1 and January 1.
During early 20X9, market interest rates on bonds similar to those issued by Siegel decreased to 8%. As a result, the market value of the bonds increased. On July 1, 20X9, Pope purchased $100,000 par value of Siegel's bonds, paying $112,695. Pope still holds the bonds on December 31, 20X9 and has amortized the premium, using the effective-interest method.
Required:
Complete the Figure 5-4 worksheet for consolidated financial statements for the year ended December 31, 20X9. Round all computations to the nearest dollar.