On January 1 20X5 Pond Corporation purchased 75 percent of
On January 1, 20X5, Pond Corporation purchased 75 percent of Skate Company’s stock at underlying book value. At that date, the fair value of the noncontrolling interest was aJanuary 1, 20X8, and December 31, 20X8, and income statements for 20X8 were reported as follows:

Additional Information
1. Pond sold a building to Skate for $65,000 on December 31, 20X7. Pond had purchased the building for $125,000 and was depreciating it on a straight-line basis over 25 years. At the time of sale, Pond reported accumulated depreciation of $75,000 and a remaining life of 10 years. Assume Pond uses the fully adjusted equity method.
2. On July 1, 20X6, Skate sold land that it had purchased for $22,000 to Pond for $35,000. Pond is planning to build a new warehouse on the property prior to the end of 20X9.
3. Skate issued $100,000, par value 10-year bonds with a coupon rate of 10 percent on January 1, 20X5, at $95,000. On December 31, 20X7, Pond purchased $40,000 par value of Skate’s bonds for $42,800. Both companies amortize bond premiums and discounts on a straight-line basis. Interest payments are made on July 1 and January 1.
4. Pond and Skate paid dividends of $30,000 and $10,000, respectively, in 20X8.

a. Prepare all elimination entries needed at December 31, 20X8, to complete a three-part consolidation worksheet.
b. Prepare a three-part worksheet for 20X8 in goodform.
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