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.

Required

a. Give all consolidation entries needed to prepare a three-part consolidation worksheet as of December 31, 20X8.

b. Prepare a three-part consolidation worksheet for 20X8 in good form.

c. Prepare a consolidated balance sheet, income statement, and statement of comprehensive income for 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 Other Comprehensive Income from Ship Co. (OCI)-Unrealized Gain on Investments Unrealized Gain on Investments (OC) Sales Income from Ship Company Pirate Corporation Debit $ 27,000 65,000 40,000 500,000 108,000 150.000 30,000 8,000 24,000 $952,000 Credit $140,000 63,000 100,000 200.000 208,000 6,000 220,000 15,000 $952.000 Ship Company Debit $8,000 22,000 30.000 235,000 40,000 110,000 10,000 3,000 15,000 $473,000 Credit $85.000 20,000 50,000 100,000 60,000 10.000 148.000 $473,000