Assigment and requirements included

Aesume that Palm Corporation had appropriately used purchase accounting for the December 31 ,2010 business combination with it6 subeidiary, Starr Company. Partial financial statements for both companies tor zAY are below. In addition to the information in the worksheet other 201 1 information follows: On December 2O,2Al $tarr's Board of Directors paid a cash dividend of $.60 per share on the 40,000 outstanding shares of common stock owned by Palm,

Palm Corporation and Starr Company $eparate Financial Statement Bata For Year Ended December 31,2A11

(before any year-end " equity method" entries have been posted) Palm Corp.

80,000 136,000 90,000

480,000

Liabilities and $tockholders' lncome Taxes Payable Other Liabilities Common Stock, $10 par Common Stock, $5 par Additional Paid in Capital Retained Earnings Total Liabilities and

Stockholders' Equity

Equity 30,000

259,600

616,000

Balance Sfieels Assets Cash lnventories Other Current Aseets lntercompany receivable / payable lnvestment in Starr Common Stock Plant Assets - Net Patent {Net} Total Assets

Starr Co.

75,000 120,000 111,000

290,000

. 29,009 616,000

ffi

25,000 163,000

200,000 60,000

168,000