Crow Corporation purchased 70 percent of West Company’s voting common stock on January 1, 20X5, for $291,200. On that date, the noncontrolling interest had a fair value of $124,800 and the book value of West’s net assets was $380,000. The book values and fair values of West’s assets and liabilities were equal except for land that had a fair value $14,000 higher than book value. The amount attributed to goodwill as a result of the acquisition is not amortized and has not been impaired.

On January 1, 20X9, Crow's inventory contained $30,000 of unrealized intercompany profits recorded by West. West's inventory on that date contained $15,000 of unrealized intercompany profits recorded on Crow's books. Both companies sold their ending 20X8 inventories to unrelated companies in 20X9.

During 20X9, West sold inventory costing $37,000 to Crow for $62,000. Crow held all inventory purchased from West during 20X9 on December 31, 20X9. Also during 20X9, Crow sold goods costing $54,000 to West for $90,000. West continues to hold $20,000 of its purchase from Crow on December 31, 20X9. Assume Crow uses the fully adjusted equity method.

Required

a. Prepare all elimination entries needed to complete a consolidation worksheet as of December 31, 20X9.

b. Prepare a consolidation worksheet as of December 31, 20X9.

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CROW CORPORATION AND WEST COMPANY Trial Balance Data December 31, 20x9 Crow Corporation Debit West Company Debit Item Credit Credit $ 81,300 200,000 270,000 290,200 200,000 40,000 35,000 85,000 110,000 250,000 Cash and Receivables Inventory Land, Buildings, & Equipment (net) Investment in West Company Stock Cost of Goods & Services Depreciation Expense Dividends Declared Sales & Service Revenue Income from Subsidiary Accounts Payable Common Stock Retained Earnings 150,000 30,000 5,000 $ 300,000 24,500 60,000 200,000 532,000 $200,000 30,000 150,000 250,000 1,116,500 ,116,500 $630,000 $630,000