On January 2,2011,Paleon Packaging Purchased 90% of the Outstanding Common

Essay

On January 2,2011,Paleon Packaging purchased 90% of the outstanding common stock of Sampson Shipping and Supplies for $513,000.Sampson's book values represented the fair values of all recorded assets and liabilities at that date,however Sampson had rights to a patent that was not recorded on their books,with an approximate fair value of $270,000,and a 10-year remaining useful life.Sampson's shareholders' equity reported on that date consisted of $100,000 in capital stock and $150,000 in retained earnings.Any remaining fair value/book value differential is assumed to be goodwill.The December 31,2012 financial statements for each of the companies are provided in the worksheet below.
Required: Complete the consolidation worksheet provided below to determine consolidated balances to be reported at December 31,2012.