The following information about Sung Company on January 1, 2014 was available:
Book Value
Inventories
20,000
Fair Value
Building
60,000
80,000
28,200
Total
87,000
115,200
Accounts Payable
Common Stock
1,000
5,000
1,000
Retained Earnings
29,000
Total
80,000
On January 1, 2014 Pan Company paid $108,000 to acquire 60% of Sung Company's outstanding common stock. The fair value of the noncontrolling interest was $72,000 on January 1, 2014. Sung continues its corporate existence as a subsidiary of Pan Company. Pan uses the complete equity method to account for its investment in Sung. The remaining useful life of the building was six years with no salvage value. Sung uses straight line depreciation. During 2014, Sung had a net income of $24,000 [sales revenue $150,000, cost of goods sold (FIFO)=$85,000, operating expenses $41,000]. The goodwill was not impaired. On December 23, 2014, Sung declared and paid $8,000 cash dividend to its shareholders.
Prepare the working paper entries (in journal entry format) for Pan Company and subsidiary for the year ended December 31, 2014. Hint: PBON