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Python acquired 75% of Slither’s stock for $316 million in cash on January 2, 2015. The...

Python acquired 75% of Slither’s stock for $316 million in cash on January 2, 2015. The fair value of the noncontrolling interest in Slither was $89 million. Slither’s book value at that time was $120 million. The assets and liabilities reported on Slither’s balance sheet had balances that approximated fair value at the date of acquisition. However, Slither had previously unreported developed technology (10 year life, straight-line), valued at $40 million.

There has been no impairment loss on the developed technology since acquisition. Goodwill was impaired $6 million in 2015, and a $3 million impairment loss should be recorded for 2016.

It is now December 31, 2016. The trial balances of Python and Slither appear below.

(in thousands)

Python

Dr (Cr)

Slither

Dr (Cr)

Current assets

$   113,500

$   35,000

Plant assets, net

1,200,000

500,000

Investment in Slither

323,800

Liabilities

(1,342,950)

(387,000)

Capital stock

(40,000)

(20,000)

Retained earnings, Jan. 1

(215,000)

(110,000)

Accumulated other comprehensive income, Jan. 1

(15,000)

(10,000)

Treasury stock

5,000

Sales revenue

(400,000)

(100,000)

Equity in net income of Slither

(2,100)

Equity in OCI of Slither

(2,250)

Cost of goods sold

250,000

35,000

Amortization and depreciation expense

40,000

15,000

Other operating expenses

95,000

40,000

Other comprehensive income

      (5,000)

   (3,000)

Total

$             0

$           0

Provide the (consolidated financial statements) as of December 31, 2016.

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