Pal Corporation Paid $5,000 for a 60% Interest in Sonny

Essay

Pal Corporation paid $5,000 for a 60% interest in Sonny Inc. on January 1, 2014 when Sonny's stockholders' equity consisted of $5,000 Capital Stock and $2,500 Retained Earnings. The fair value and book value of Sonny's assets and liabilities were equal on this date. Two years later, on December 31, 2015, the balance sheets of Pal and Sonny are summarized as follows:
Required:
Complete the consolidated balance sheet working papers for Pal Corporation and Subsidiary at December 31, 2015.