Worksheet, two subsidiaries, preferred stock, intercompany merchandise and fixed assets, bonds. The following information pertains to Titan Corporation and its two subsidiaries, Boat Corporation and...

Worksheet, two subsidiaries, preferred stock, intercompany merchandise and fixed assets, bonds. The following information pertains to Titan Corporation and its two subsidiaries, Boat Corporation and Engine Corporation:

a. The three corporations are all in the same industry and their operations are homogeneous. Titan Corporation exercises control over the boards of directors of Boat Corporation and Engine Corporation and has installed new principal officers in both.