On January 1, year 4, Golden Corporation acquired Silver corporation by purchasing 100% of the stock of Silver in exchange for 20,000 shares of Golden stock. On the date of acquisition Golden stock traded for $18 per share on the stock exchange. The fair market value of Silver’s inventory is $10,000 higher than the book value.The book values of each company on January 1, year 4, are shown below.

                              Golden Corp.          Silver Corp.

Current assets            $320,000              $ 70,000
Noncurrent assets        640,000                380,000
Current liabilities           210,000                50,000
Noncurrent liabilities     150,000                 90,000
Owners’ equity            600,000               310,000
 

　　Additional information
　　 During year 4, the following transactions occurred:
　　1. Golden sold inventory to Silver for $50,000 on account. The normal profit on sales for Golden is 40%. At December 31, year 4, Silver had 20% of the goods remaining in ending inventory. At December 31, year 4, Silver had not paid Golden for $8,000 of the inventory.
　　2. On October 1, year 4, Silver Corp. sold equipment to Golden for $24,000. The equipment was purchased by Silver on 1/1/Y1 for $60,000 and was depreciated straight-line over five years with no salvage value. Golden depreciated the new equipment over three years with no salvage value.
　　 During year 4, Golden did not make entries to record the income of Silver.
　　 At December 31, year 4, totals from the preclosing trial balances of both firms are as follows:

                                        Golden Corporation & Subsidiaries UNADJUSTED TRIAL BALANCE December 31, Year 4 

                               Golden Corp.                     Silver Corp. 

Revenues                 1,000,000                            400,000 

Expenses                  780,000                              335,000 

Current assets           400,000                              110,000 

Noncurrent assets      1,260,000                            420,000 

Current liabilities         300,000                              70,000 

Noncurrent liabilities    180,000                              85,000 

Owners’ equity           960,000                              310,000

　　Below is a consolidation worksheet dated December 31, year 4 (before closing the books of Golden and Silver). Prepare the following worksheet with the correct number.

                                           Golden Corporation CONSOLIDATION WORKSHEET December 31, Year 4 

                                                                                                     Elimination entries

                                             Golden Corp.         Silver Corp.           Debit            Credit             End Balance

Revenues and gains
Expenses
Current assets
Noncurrent assets
Differential
Current liabilities
Noncurrent liabilities
Owners’ equity
　　Answer:
 

                                                                                             Elimination entries

                                      Golden Corp.         Silver Corp.           Debit            Credit             End Balance

Revenues and gains            1,000,000            400,000              59,000                               1,341,000
Expenses                             780,000            335,000                1,000          46,000           1,070,000
Current assets                      400,000            110,000              10,000           12,000             508,000
Noncurrent assets              1,260,000            420,000              76,000          406,000          1,350,000
Differential                                                                            50,000            50,000
Current liabilities                   300,000               70,000               8,000                                  362,000
Noncurrent liabilities              180,000               85,000                                                         265,000
Owners’ equity                    960,000              310,000             310,000                                960,000