On January 2, 2014, Paleon Packaging Purchased 90% of the Outstanding

Essay

On January 2, 2014, 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, 2015 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, 2015.