1 (in thousand)

Investment cost (75%) 300

Implied fair value of Sue 400
Book value 200
Excess (goodwill) 200
75% 25%
Net income Sue 112.5 37.5
Realized profit beginning inventory 10
Unrealized profit ending inventory (20)
102.5 37.5
a Sales 130
COS 130
b COS 20
Inventory 20
c Investment in Sue 10
COS 10
d Income from Sue 102.5
Dividends 37.5
Investment in Sue 65
e NCIS 37.5
Dividends 12.5
NCI 25
f C/S 150
R/E 90
Goodwill 200
Investment in Sue 330
NCI 110
g D/P 15
D/R 15
h A/P 15
A/R 15
Income Statement
Sales 600 400 130
Income from Sue 102.5 102.5
Cost of sales (270) (210) 20 130
10
Operating expenses (145) (40)
Consolidated net income
Noncontrolling int.share 38
Controlling share of NI 287.5 150
Retained Earnings
Retained earnings Patty 182.5
Retained earnings Sue 90 90
Controlling share of NI 287.5 150
Dividends (150) (50) 37.5
12.5
Retained earnings 320 190
Balance Sheet
Cash 85 30
Accounts receivable 165 100 15
Dividends receivable 15 15
Inventories 60 80 20
Land 80 50
Buildings net 230 100
Equipment net 200 140
Investment in Sue 385 10 65
330
Goodwill 200
1,220 500
Accounts payable 225 100 15
Dividends payable 70 20 15
Sue 75% Patty
Patty Corporation and Subsidiary
Consolidation Workpapers
for the year ended December 31, 2011
(in thousands)
Adjustments
and
Eliminations
Other liabilities 155 40
Common stock, 450 150 150
Retained earnings 320 190
1,220 500
Noncontrolling interest January 1 25
Noncontrolling interest December 31 110
870
(360)
(185)
325
(38)
287.5
182.5
287.5
(150)
320
115
250
120
130
330
340
200
1,485
310
75
Consolidated Statements
Patty Corporation and Subsidiary
Consolidation Workpapers
for the year ended December 31, 2011
(in thousands)
195
450
320
135
1,485
2 (in thousand)
Investment cost (90%) 270
Implied fair value of Sue 300
Book value 240
Excess 60
1 0
Net income Stor 45 5
Amortization of patent (5.4) (0.6)
Realized profit beginning inventory 10
Unrealized profit ending inventory (12)
Piecemeal recognition of profit on machinery 2
Unrealized gain on sale of land (5)
34.6 4.4
a Sales 72
COS 72
b COS 12
Inventory 12
c Investment in Stor 10
COS 10
d Investment in Stor 6
Machinery 6
e Machinery 2
Operating Expense 2
f Gain sale on Land 5
Land 5
g Operating Expense 6
Patent 6
h Acc Payable 10
Acc Receivable 10
i Dividend Payable 18
Dividend Receivable 18
j Income from Stor 34.6
Dividend 18
Investment in Stor 16.6
k NCI Share 4.4
Dividend 2
NCI 2.4
l Capital Stock 150
Retained Earning 120
Patent 54
Investment in Stor 291.6
NCI 32.4
m Depreciation Exp 6
Acc Depreciation 6
6
90% 10%
5.4 0.6
Amortization of patent =
Adjusted and Eliminations
Sales 450 190 72
Income from Stor 34.6 34.6
Gain on land 5 5
COS (200) (100) 12 72
10
Operating Expense (113) (40) 6 2
NCI 4.4
Net Income 176.6 50
Beg. Retained Earning 200 120 120
Add: Net Income 176.6 50
Less : Dividend (150) (20) 18
2
End. Retained Earning 226.6 150
Cash 136.4 14
Acc Receivable 180 100 10
Dividends Receivable 18 18
Inventories 60 36 12
Land 100 30 5
Buildings- net 280 80
Machinery-net 330 140 2 6
Investment in Stor 292.2 10 16.6
6 291.6
Patent 54 6
Total Assets 1,396.6 400
Acc Payable 200 50 10
Dividends Payable 20 20 18
Other Liabilities 140 30
Capital Stock 800 150 150
Retained Earnings 226.6 150
NCI-1 Jan 2010 2.4
Income Statement
Retained Earning
Balance Sheet
Pall Corporation and Subsidiary
Consolidation WorkPapers
for the Year Ended December 31, 2012
(in thousands)
Pall Stor 90%
NCI- 31 Dec 2010 32.4
Total Liabilities +Equities 1,386.6 400 178 34.8
568
(230)
(157)
(4.4)
176.6
200
176.6
(150)
226.6
150.4
270
84
125
360
466
48
1,503.4
240
32
170
800
226.6
34.8
Income Statement
Retained Earning
Balance Sheet
Pall Corporation and Subsidiary
Consolidation WorkPapers
for the Year Ended December 31, 2012
(in thousands)
Consolidated
1,503.4