Prepare a consolidated balance sheet, income statement, and statement of comprehensive income for 20X8
Pirate Corporation acquired 60 percent ownership of Ship Company on January 1, 20X8, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 40 percent of the book value of Ship Company.
| Item | Pirate Corporation | Ship Company | ||
|---|---|---|---|---|
| Debit | Credit | Debit | Credit | |
| Cash | $ 27,000 | $8,000 | ||
| 65,000 | 22,000 | |||
| Inventory | 40,000 | 30,000 | ||
| Buildings and Equipment | 500,000 | 235,000 | ||
| Investment in Row Company | 40,000 | |||
| Investment in Ship Company | 108,000 | |||
| Cost of Goods Sold | 150,000 | 110,000 | ||
| Depreciation Expense | 30,000 | 10,000 | ||
| Interest Expense | 8,000 | 3,000 | ||
| Dividends Declared | 24,000 | 15,000 | ||
| Accumulated Depreciation | $ 140,000 | $ 85,000 | ||
| Accounts Payable | 63,000 | 20,000 | ||
| Bonds Payable | 100,000 | 50,000 | ||
| Common Stock | 200,000 | 100,000 | ||
| 208,000 | 60,000 | |||
| Other Comprehensive Income from Ship Company (OCI)—Unrealized Gain on Investments | 6,000 | |||
| Unrealized Gain on Investments (OCI) | 10,000 | |||
| Sales | 220,000 | 148,000 | ||
| Income from Ship Company | 15,000 | |||
| $ 952,000 | $ 952,000 | $ 473,000 | $ 473,000 |
Additional Information
Ship purchased stock of Row Company on January 1, 20X8, for $30,000 and classified the investment as available-for-sale securities. The value of Row’s securities increased to $40,000 at December 31, 20X8.
Prepare a consolidated
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