Brown Company owns 90 percent of the common stock and 60 percent of the preferred stock of White Corporation, both acquired at underlying book value on January 1, 20X1. At that date, the fair value of the noncontrolling interest in White common stock was equal to 10 percent of the book value of its common stock. Trial balances for the companies on December 31, 20X6, are as follows:

White preferred shares pay a 7.5 percent annual dividend and are cumulative. Preferred dividends for 20X6 were declared on December 31, 20X6, and are to be paid January 1, 20X7.

Required
a. Prepare the elimination entries needed to complete a full consolidation worksheet for 20X6.
b. Prepare a consolidation worksheet as of December 31,20X6.

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Brown Company White Corporation Credit Credit Buildings & Equipment (net) Cost of Goods Sold Depreciation & Amortization Dividends Declared: Accounts Payable 3 Dividends Payable 3 Income from White Corporation $1,602,500 $1,602,500 $935,000 $935,000