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Penn Corporation purchased 80 percent ownership of State Company on Jaruary 1.202 at undertying book...

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Accounting

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Penn Corporation purchased 80 percent ownership of State Company on Jaruary 1.202 at undertying book value. At that date, the fair value of the noncontrolling intereat was equal to 20 percent of the book value of State On January 1, 20X4. Penn sold 2,000 shares of State's stock for $65,000 to Nonaffiliated Company and recorded a $10,000 increase in additional pald-in capltal. Tral balances for the companies on December 31,204, contain the following data: State's net income was earned evenly throughout the yoar, Both sompanies deciared and paid their dividends on December 31,204. Penn uses the equity method in accountong for its investment in stote. Requitred. a. Prepore the consolidation entries needed to complete a worksheet for 204. b. Prepare a consolidation worksheet for 204 Complete this question by entering your answers in the tabs below

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