Consolidated workpaper Pal Corporation acquired a 90 percent interest in Sor Corporation on January 1, 2011, for $270,000, at which time Sor's capital stock and retained earnings were $150,000 and $90,000, respectively. The fair value/book value differential is goodwill. Financial statements for Pal and Sor for 2012 are as follows (in thousands): Combined Income and Retained Earnings Statement for the Year Ended December 31, 2012 Sales Income from Sor Gain on land Cost of sales Operating expenses Net income Pal $ 450 40 5 (200) (113) 182 Sor $190 (100) (40) 50
Consolidated workpaper Pal Corporation acquired a 90 percent interest in Sor Corporation on January 1, 2011, for $270,000, at which time Sor's capital stock and retained earnings were $150,000 and $90,000, respectively. The fair value/book value differential is goodwill. Financial statements for Pal and Sor for 2012 are as follows (in thousands): Combined Income and Retained Earnings Statement for the Year Ended December 31, 2012 Sales Income from Sor Gain on land Cost of sales Operating expenses Net income Pal $ 450 40 5 (200) (113) 182 Sor $190 (100) (40) 50
Chapter1: Financial Statements And Business Decisions
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