On June 30, 2011, Plaster, Inc., paid $916,000 for 80 percent of Stucco Company’s outsta...

On June 30, 2011, Plaster, Inc., paid $916,000 for 80 percent of Stucco Company’s outstanding stock. Plaster assessed the acquisition-date fair value of the 20 percent noncontrolling interest at $229,000. At acquisition date, Stucco reported the following book values for its assets and liabilities:

On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco’s assets as follows:

At the end of 2011, the following comparative (2010 and 2011) balance sheets and consolidated income statement were available:

Additional Information for 2011

• On December 1, Stucco paid a $40,000 dividend. During the year, Plaster paid $100,000 in dividends.

• During the year, Plaster issued $800,000 in long-term debt at par.

• Plaster reported no asset purchases or dispositions other than the acquisition of Stucco. Prepare a 2011 consolidated statement of cash flows for Plaster and Stucco. Use the indirect method of reporting cash flows from operating activities.