Baldwin acquired a 30% interest in a joint venture, Celdron, for $50,000 on January 1, 2011. The equity of Celdron at the acquisition date was:

Share capital ...... $ 30,000

Retained earnings .... 120,000

$150,000

All the identifiable assets and liabilities of Celdron were recorded at fair value. Net income and dividends for the years ended December 31, 2011 to 2013 were as follows:

Required
(a) Prepare journal adjustments in the books of Baldwin for each of the years ended December 31, 2011, to 2013, in relation to its investment in the joint venture, Celdron.
(b) Prepare the consolidated financial statement adjustments to account for Baldwin's interest in the joint venture, Celdron.

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Dividends paid Income tax expense $30,000 25,000 20,000 Income before tax 2011 2012 2013 $80,000 70,000 60,000 $80,000 15,000 10,000