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Home » Accounting Class Homework Help » Punca Company purchased 89% of the common stock of Surrano Company on July 1, work,

Punca Company purchased 89% of the common stock of Surrano Company on July 1, work,

Punca Company purchased 89% of the common stock of Surrano Company on July 1, work, for a cash payment of $5go,ooo. December go, youz, trial balances for Punca and Surrano were: Punca Surrano Current Assets $ 150,000 $ 180,000 Treasury Stock at Cost, 500 shares -0 48,000 Investment in Surrano Company 590,000 -0 Property and Equipment 1,250,000 750,000 Cost of Goods Sold 1,540,000 759,000 Other Expenses $15,000 250,000 Dividends Declared 50,000 Total $3,945,000 $2,037,000 Accounts and Notes Payable $ 277,500 5 150,000 Dividends Payable -0 50,000 Capital Stock, $5 par value 270,000 10,000 Other Contributed Capital 900,000 250,000 Retained Earnings, 1/1 955,000 241,000 Sales 2.100,000 1,300,000 Dividend Income 42-500 6,000 Total $3,945,000 $2,037,000 Surrano Company declared a $50,ooo cash dividend on December 20, 2022, payable on January to, 2023, to stockholders of record on December 31, 2022. Punca Company recognized the dividend on its declaration date. Any difference between book value and the value implied by the purchase price relates to subsidiary land, included in property and equipment. Income is earned evenly throughout the year. Required: Prepare a consolidated statements workpaper at December 31, 2022