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Peace Corporation acquired 70 percent of the ownership of Symbol Company on January 1, 20X1. The fair value of the noncontrolling interest at acquisition was equal to its proportionate share of the fair value of the net assets of Symbol. The full amount of the differential at acquisition was attributable to buildings and equipment, which had a remaining useful life of eight years. Financial statement data for the two companies and the consolidated entity at December 31, 20X6, are as follows:

PEACE CORPORATION AND SYMBOL COMPANY Balance Sheet Data December 31, 20X6
Item	Peace Corporation						Symbol Company						Consolidated Entity
Assets
Cash		$	66,000					$	50,000					$	116,000
Accounts Receivable			?						65,000						142,000
Inventory			120,000						100,000						212,000
Buildings & Equipment			430,000						220,000						680,000
Less: Accumulated Depreciation			(181,000	)					(112,000	)					( ?	)
Investment in Symbol Company			?
Total Assets		$	?					$	323,000					$	?
Liabilities & Equity
Accounts Payable		$	82,000					$	22,000					$	86,000
Other Payables			?						8,000						?
Notes Payable			261,000						120,000						381,000
Common Stock			120,000						61,000						120,000
Retained Earnings			173,500						112,000						173,500
Noncontrolling Interest															44,500
Total Liabilities & Equity		$	?					$	323,000					$	?

PEACE CORPORATION AND SYMBOL COMPANY Income Statement Data For the Year Ended December 31, 20X6
Item	Peace Corporation						Symbol Company						Consolidated Entity
Sales		$	420,000					$	261,000					$	628,000
Income from Symbol Company			34,300
Total Income		$	454,300					$	261,000					$	628,000
Cost of Goods Sold		$	340,000					$	168,000					$	440,000
Depreciation Expense			21,000						26,000						52,000
Interest Expense			26,000						10,600						41,600
Other Expenses			23,000						16,600						44,600
Total Expenses		$	(410,000	)				$	(221,200	)				$	(578,200	)
Consolidated Net Income															49,800
Income to Noncontrolling Interest															(5,500	)
Controlling Interest in Net Income		$	44,300					$	39,800					$	44,300

All unrealized profit on intercompany inventory sales on January 1, 20X6, were eliminated on Peaces books. All unrealized inventory profits at December 31, 20X6, were eliminated on Symbols books. Assume Peace uses the fully adjusted equity method and that Peace does not make the optional depreciation consolidation worksheet entry. Required: a. For the buildings and equipment held by Symbol when Peace acquired it and still on hand on December 31, 20X6, by what amount had buildings and equipment increased in value from their acquisition to the date of combination with Peace? b. What amount should be reported as accumulated depreciation for the consolidated entity at December 31, 20X6 (assuming Peace does not make the optional accumulated depreciation consolidation entry)? c. If Symbol reported capital stock outstanding of $61,000 and retained earnings of $31,000 on January 1, 20X1, what amount did Peace pay to acquire its ownership of Symbol?

d. What balance does Peace report as its investment in Symbol at December 31, 20X6?

e. What amount of intercorporate sales of inventory occurred in 20X6?

f. What amount of unrealized inventory profit exists at December 31, 20X6?

g. Prepare the consolidation entry used in eliminating intercompany inventory sales during 20X6. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Consolidation Worksheet Entries

• Record the entry to eliminate the intercompany inventory sales.

Note: Enter debits before credits.

	Entry Accounts Debit Credit 1

h. What was the amount of unrealized inventory profit at January 1, 20X6?

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