1. Bower Corporation paid $5,000 for a 60% interest in Fig Inc. on January 1, 2005 when Fig's stockholders' equity consisted of $5,000 Capital Stock and $2,500 Retained Earnings. Fig's assets and liabilities were fairly valued on this date. Two years later, on December 31, 2006, the balance sheets of Bower and Fig are summarized as follows:

Required:

Complete the consolidated balance sheet working papers for Bower Corporation and Subsidiary at December 31, 2006.

Koel Corporation acquired all the voting stock of Rain Company for $500,000 on January 1, 2005 when Rain had Capital Stock of $300,000 and Retained Earnings of $150,000. Rain's assets and liabilities were fairly valued except for the plant assets. The entire cost-book differential is allocated to plant assets and is fully depreciated on a straight-line basis over a 10-year period.

During 2005, Koel borrowed $25,000 on a short-term non-interest-bearing note from Rain, and on December 31, 2005, Koel mailed a check to Rain to settle the note. Rain deposited the check on January 5, 2006, but receipt of payment of the note was not reflected in Rain's December 31, 2005 balance sheet.

Required:
Complete the consolidation working papers.