This problem is a continuation of P5–37. Pirate Corporation acquired 60 percent ownership of Ship Company on January 1, 20X8, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 40 percent of the book value of Ship Company. Accumulated depreciation on buildings and equipment was $75,000 on the acquisition date. Trial balance data at December 31, 20X9, for Pirate and Ship are as follows:

Additional Information 

Ship purchased stock of Row Company on January 1, 20X8, for $30,000 and classified the investment as available-for-sale securities. The value of Row’s securities increased to $40,000 and $44,000, respectively, at December 31, 20X8, and 20X9.

Required
a. Give all consolidation entries needed to prepare a three-part consolidation worksheet as of December 31, 20X9.
b. Prepare a three-part consolidation worksheet for 20X9 in good form.

Data from P5-37

Pirate Corporation acquired 60 percent ownership of Ship Company on January 1, 20X8, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 40 percent of the book value of Ship Company. Accumulated depreciation on buildings and equipment was $75,000 on the acquisition date. Trial balance data at December 31, 20X8, for Pirate and Ship are as follows:

Additional Information 

Ship purchased stock of Row Company on January 1, 20X8, for $30,000 and classified the investment as available-for-sale securities. The value of Row’s securities increased to $40,000 at December 31, 20X8.

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Item Cash Accounts Receivable Inventory Buildings & Equipment Investment in Row Company Securities Investment in Ship Company Cost of Goods Sold Depreciation Expense Interest Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Accumulated Other Comprehensive Income Other Comprehensive Income from Ship Co. (OCI)-Unrealized Gain on Investments Unrealized Gain on Investments (OCI) Sales Income from Ship Company $ Pirate Corporation Debit 18,000 45,000 40,000 585.000 116,400 170,000 30,000 8,000 40,000 Credit $ 170,000 75,000 100,000 200,000 231,000 6,000 2,400 250,000 18,000 $1.052,400 $1,052.400 Ship Company Debit $ 11,000 21,000 30,000 257,000 44,000 97,000 10,000 3,000 20,000 Credit $ 95,000 24,000 50,000 100,000 70,000 10,000 4,000 140,000 $493,000 $493.000