D 31, 2021 balances
Parent Subsidiary
Pecos Suaro
Revenues
(1,052,000.00)
$
(427,000.00)
$
Operating Expenses
821,000.00
$
262,000.00
$
Goodwill impairment loss
-
$
-
$
Income of Suaro
-
$
-
$
Net Income (loss)
(231,000.00)
$
(165,000.00)
$
Retained earnings - Pecos, 1/1/21
(930,000.00)
$
-
$
Retained earnings - Suaro, 1/1/21
-
$
(201,000.00)
$
Net income (above)
(231,000.00)
$
(165,000.00)
$
Dividends declared
200,000.00
$
35,000.00
$
Retained earnings, 12/31/21
-
$
(331,000.00)
$
Cash
195,000.00
$
95,000.00
$
Receivables
247,000.00
$
143,000.00
$
Inventory
415,000.00
$
197,000.00
$
Investment in Suaro
-
$
-
$
Land
341,000.00
$
85,000.00
$
Equipment (net)
240,100.00
$
100,000.00
$
Software
-
$
312,000.00
$
Other Intangibles
145,000.00
$
-
$
Goodwill
-
$
-
$
Total assets
1,583,100.00
$
932,000.00
$
Liabilities
(1,537,100.00)
$
(251,000.00)
$
Common Stock
(500,000.00)
$
(350,000.00)
$
Retained earnings (above)
-
$
(331,000.00)
$
Total liabilities and equity
(2,037,100.00)
$
(932,000.00)
$
F Value Allocation Schedule
Price paid
1,450,000.00
$
Book value
476,000.00
$
Excess infair value over book value
974,000.00
$
Amortizations
to land
(10,000.00)
$
2,020.00
$
to brand name
60,000.00
$
-
$
to software
100,000.00
$
50,000.00
$
to IPR&D
300,000.00
$
300,000.00
$
to goodwill
524,000.00
$
350,000.00
$
S 's Retained Earnings Cha
Income
Dividends
2,020.00
$
75,000.00
$
-
$
2,021.00
$
165,000.00
$
35,000.00
$
2,021.00
$
-
$
50,000.00
$
-
$
50,000.00
$
Parent
Pecos
Revenues
(1,052,000.00)
$
Operating Expenses
821,000.00
$
Amortization of Intangibles
-
$
Goodwill impairment loss
-
$
Income of Suaro
(115,000.00)
$
Net Income (loss)
(346,000.00)
$
Retained earnings - Pecos, 1/1/21
(655,000.00)
$
Retained earnings - Suaro, 1/1/21
Net income (above)
(346,000.00)
$
Dividends declared
200,000.00
$
Retained earnings, 12/31/21
(801,000.00)
$
Cash
195,000.00
$
Receivables
247,000.00
$
Inventory
415,000.00
$
Investment in Suaro
1,255,000.00
$
Land
341,000.00
$
Equipment (net)
240,100.00
$
Software
-
$
Other Intangibles
145,000.00
$
Brand name
-
$
Goodwill
-
$
Total assets
2,838,100.00
$
Liabilities
(1,537,100.00)
$
Common Stock
(500,000.00)
$
Retained earnings (above)
(801,000.00)
$
Total liabilities and equity
(2,838,100.00)
$
Price paid
1,450,000.00
$
Book value
476,000.00
$
Excess infair value over book value
974,000.00
$
P Company and Suaro Company
C Wo sheet - Investment Method: Equity
F t Y Ended December 31, 2021
F Value Allocation Schedule
to land
(10,000.00)
$
to brand name
60,000.00
$
to software
100,000.00
$
to IPR&D
300,000.00
$
to goodwill
524,000.00
$
Income
Dividends
2020
75,000.00
$
-
$
2021
165,000.00
$
35,000.00
$
Totals
240,000.00
$
35,000.00
$
A Ent
D
C
Entry S
Common Stock
350,000.00
$
Retained Earnings, 1/1 (Suaro)
201,000.00
$
Investment in Suaro
551,000.00
$
Entry A
Brandname
60,000.00
$
Software
50,000.00
$
Goodwill
524,000.00
$
Land
10,000.00
$
Investment in Suaro
624,000.00
$
Entry I
Equity in Subsidiary Earnings
115,000.00
$
Investment in Suaro
115,000.00
$
Entry D
Investment in Suaro
35,000.00
$
Dividends paid
35,000.00
$
Entry E
Operation Expense
50,000.00
$
Software
50,000.00
$
S 's R E Changes
Subsidiary
Consolidated Entries
Suaro
Debit
Credit
(427,000.00)
$
262,000.00
$
-
$
E.
50,000.00
$
-
$
-
$
I.
115,000.00
$
(165,000.00)
$
(201,000.00)
$
S.
201,000.00
$
(165,000.00)
$
35,000.00
$
D.
35,000.00
$
(331,000.00)
$
95,000.00
$
143,000.00
$
197,000.00
$
-
$
D.
35,000.00
$
S.
551,000.00
$
A.
624,000.00
$
I.
115,000.00
$
85,000.00
$
A.
10,000.00
$
100,000.00
$
312,000.00
$
A.
50,000.00
$
E.
50,000.00
$
-
$
-
$
A.
60,000.00
$
-
$
A.
524,000.00
$
932,000.00
$
(251,000.00)
$
(350,000.00)
$
S.
350,000.00
$
(331,000.00)
$
(932,000.00)
$
1,385,000.00
$
1,385,000.00
$
(346,000.00)$
200,000.00$
(801,000.00)$
(1,479,000.00)$
1,083,000.00$
50,000.00$
-$
-$
(511,000.00)$
145,000.00$
-$
Pecos Co Su Company
Consolidated Wor - I M : E
For the Yea En Dec 31, 2021
Consolidated Totals
-$
290,000.00$
390,000.00$
612,000.00$
-$
-$
-$
(655,000.00)$
-$
-$
-$
416,000.00$
340,100.00$
312,000.00$
(801,000.00)$
(3,089,100.00)$
Fair Value Al Sc
60,000.00$
524,000.00$
3,089,100.00$
-$
(1,788,100.00)$
(500,000.00)$
Amortizations
2,020.00
$
2,021.00
$
50,000.00
$
50,000.00
$
300,000.00
$
350,000.00
$
50,000.00
$
Suaro's Retained Earnings C
Parent Subsidiary
Pecos Suaro
Revenues
(1,052,000.00)
$
(427,000.00)
$
Operating Expenses
821,000.00
$
262,000.00
$
Amortization of Intangibles
-
$
-
$
Goodwill impairment loss
-
$
-
$
Income of Suaro
(165,000.00)
$
-
$
Net Income (loss)
(396,000.00)
$
(165,000.00)
$
Retained earnings - Pecos, 1/1/21
(1,005,000.00)
$
Retained earnings - Suaro, 1/1/21
(201,000.00)
$
Net income (above)
(396,000.00)
$
(165,000.00)
$
Dividends declared
200,000.00
$
35,000.00
$
Retained earnings, 12/31/21
(1,201,000.00)
$
(331,000.00)
$
Cash
195,000.00
$
95,000.00
$
Receivables
247,000.00
$
143,000.00
$
Inventory
415,000.00
$
197,000.00
$
Investment in Suaro
1,655,000.00
$
-
$
Land
341,000.00
$
85,000.00
$
Equipment (net)
240,100.00
$
100,000.00
$
Software
-
$
312,000.00
$
Other Intangibles
145,000.00
$
-
$
Brand name
-
$
-
$
Goodwill
-
$
-
$
Total assets
3,238,100.00
$
932,000.00
$
Liabilities
(1,537,100.00)
$
(251,000.00)
$
Common Stock
(500,000.00)
$
(350,000.00)
$
Retained earnings (above)
(1,201,000.00)
$
(331,000.00)
$
Total liabilities and equity
(3,238,100.00)
$
(932,000.00)
$
Price paid
1,450,000.00
$
Book value
476,000.00
$
Excess infair value over book value
974,000.00
$
P Company Suaro Company
C Wo - I ment Method: Partial Equity
F t Y En December 31, 2021
F Value Allocation Schedule
Amortizations
to land
(10,000.00)
$
2,020.00
$
to brand name
60,000.00
$
to software
100,000.00
$
50,000.00
$
to IPR&D
300,000.00
$
300,000.00
$
to goodwill
524,000.00
$
350,000.00
$
Income
Dividends
2020
75,000.00
$
-
$
2021
165,000.00
$
35,000.00
$
Totals
240,000.00
$
35,000.00
$
A Ent
D
C
Entry S
Common Stock
350,000.00
$
Retained Earnings, 1/1 (Suaro)
201,000.00
$
Investment in Suaro
551,000.00
$
Entry A
Brandname
60,000.00
$
Software
50,000.00
$
Goodwill
524,000.00
$
Land
10,000.00
$
Investment in Suaro
624,000.00
$
Entry I
Equity in Subsidiary Earnings
165,000.00
$
Investment in Suaro
165,000.00
$
Entry D
Investment in Suaro
35,000.00
$
Dividends paid
35,000.00
$
Entry E
Operation Expense
50,000.00
$
Software
50,000.00
$
Entry C
Retained Earnings, 1/1
350,000.00
$
Investment in Suaro
350,000.00
$
S 's R E Changes
Consolidated Entries
Debit
Credit
E.
50,000.00
$
I.
165,000.00
$
C.
350,000.00
$
S.
201,000.00
$
D.
35,000.00
$
D.
35,000.00
$
S.
551,000.00
$
A.
624,000.00
$
I.
165,000.00
$
C.
350,000.00
$
A.
10,000.00
$
A.
50,000.00
$
E.
50,000.00
$
A.
60,000.00
$
A.
524,000.00
$
S.
350,000.00
$
1,785,000.00
$
1,785,000.00
$
(1,479,000.00)$
Pecos Company and S Company
Consolidated Worksheet - Inves M : P Equity
For the Year Ended D 31, 2021
Consolidated Totals
-$
1,133,000.00$
-$
-$
-$
(346,000.00)$
-$
(655,000.00)$
-$
(346,000.00)$
200,000.00$
(801,000.00)$
145,000.00$
290,000.00$
390,000.00$
612,000.00$
-$
-$
-$
-$
-$
416,000.00$
340,100.00$
312,000.00$
(801,000.00)$
(3,089,100.00)$
Fair Value Allocation S
60,000.00$
524,000.00$
3,089,100.00$
-$
(1,788,100.00)$
(500,000.00)$
2,021.00
$
50,000.00
$
50,000.00
$
Parent
Pecos
Revenues
(1,052,000.00)
$
Operating Expenses
821,000.00
$
Amortization of Intangibles
-
$
Goodwill impairment loss
-
$
Income of Suaro
(35,000.00)
$
Net Income (loss)
(266,000.00)
$
Retained earnings - Pecos, 1/1/21
(930,000.00)
$
Retained earnings - Suaro, 1/1/21
Net income (above)
(266,000.00)
$
Dividends declared
200,000.00
$
Retained earnings, 12/31/21
(996,000.00)
$
Cash
195,000.00
$
Receivables
247,000.00
$
Inventory
415,000.00
$
Investment in Suaro
1,450,000.00
$
Land
341,000.00
$
Equipment (net)
240,100.00
$
Software
-
$
Other Intangibles
145,000.00
$
Brand name
-
$
Goodwill
-
$
Total assets
3,033,100.00
$
Liabilities
(1,537,100.00)
$
Common Stock
(500,000.00)
$
Retained earnings (above)
(996,000.00)
$
Total liabilities and equity
(3,033,100.00)
$
Price paid
1,450,000.00
$
Book value
476,000.00
$
Excess infair value over book value
974,000.00
$
P Company and Suaro Company
C Wo eet - Investment Method: Initial Value
F t Year Ended December 31, 2021
F Value Allocation Schedule
to land
(10,000.00)
$
to brand name
60,000.00
$
to software
100,000.00
$
to IPR&D
300,000.00
$
to goodwill
524,000.00
$
Income
Dividends
2020
75,000
$
-
$
2021
165,000
$
35,000
$
Totals
240,000
$
35,000
$
A Ent
D
C
Entry S
Common Stock
350,000
Retained Earnings, 1/1 (Suaro)
201,000
Investment in Suaro
551,000
Entry A
Brandname
60,000
Software
50,000
Goodwill
524,000
Land
10,000
Investment in Suaro
624,000
Entry I
Equity in Subsidiary Earnings
35,000
Investment in Suaro
35,000
Entry E
Operation Expense
50,000
Software
50,000
Entry C
Retained Earnings, 1/1
275,000
Investment in Suaro
275,000
S 's R E Changes
Subsidiary
Consolidated Entries
Suaro
Debit
Credit
(427,000.00)
$
262,000.00
$
-
$
E.
50,000.00
$
-
$
-
$
I.
35,000.00
$
(165,000.00)
$
C.
275,000.00
$
(201,000.00)
$
S.
201,000.00
$
(165,000.00)
$
35,000.00
$
I.
35,000.00
$
(331,000.00)
$
95,000.00
$
143,000.00
$
197,000.00
$
-
$
S.
551,000.00
$
A.
624,000.00
$
C.
275,000.00
$
85,000.00
$
A.
10,000.00
$
100,000.00
$
312,000.00
$
A.
50,000.00
$
E.
50,000.00
$
-
$
-
$
A.
60,000.00
$
-
$
A.
524,000.00
$
932,000.00
$
(251,000.00)
$
(350,000.00)
$
S.
350,000.00
$
(331,000.00)
$
(932,000.00)
$
1,545,000.00
$
1,545,000.00
$
(1,479,000.00)$
Pecos Co Su Company
Consolidated Works - I M : Initial Value
For the Ye En Dec 31, 2021
Consolidated Totals
-$
1,083,000.00$
50,000.00$
-$
-$
(346,000.00)$
-$
(655,000.00)$
-$
(346,000.00)$
200,000.00$
(801,000.00)$
145,000.00$
290,000.00$
390,000.00$
612,000.00$
-$
-$
-$
-$
-$
416,000.00$
340,100.00$
312,000.00$
(801,000.00)$
(3,089,100.00)$
Fair Value A Sc
60,000.00$
524,000.00$
3,089,100.00$
-$
(1,788,100.00)$
(500,000.00)$
Amortizations
2,020.00
$
2,021.00
$
50,000.00
$
50,000.00
$
300,000.00
$
350,000.00
$
50,000.00
$
Suaro's Retained Earning Changes
