Item$137\mathrm{.}72$points Return to question Item $13$ Palermo Incorporated purchased $80$ percent of the outstanding stock of Salina Ranching Company, located in Australia, on January $1,20$X$3.$ The purchase price in Australian dollars $($A$$)$ was A$$200,000,$ and A$$40,000$ of the differential was allocated to plant and equipment, which is amortized over a $10-$year period. The remainder of the differential was attributable to a patent. Palermo Incorporated amortizes the patent over $10$ years. A trial balance translated to U$.$ S$.$ dollars for Salina Ranching is as follows: Salina Ranching CompanyTrial Balance TranslatedDecember $31,20$X$3$Australian DollarsExchanges RateU.S$.$ DollarsCashA$ $44,1000\mathrm{.}60$$ $26,460$Accounts Receivable $($net$)72,0000\mathrm{.}6043,200$Inventory$86,0000\mathrm{.}6051,600$Plant and Equipment$240,0000\mathrm{.}60144,000$Cost of Goods Sold$330,0000\mathrm{.}65214,500$Depreciation Expense$24,0000\mathrm{.}6515,600$Operating Expenses$131,5000\mathrm{.}6585,475$Interest Expense$5,7000\mathrm{.}653,705$Dividends Declared$9,0000\mathrm{.}676,030$Total$$$ $590,570$Accumulated other comprehensive$$Income $-$ Translation Adjustment$($debit$)16,760$Total DebitsA$ $942,300$$ $607,330$Accumulated DepreciationA$ $60,0000\mathrm{.}60$$ $36,000$Accounts Payable$53,8000\mathrm{.}6032,280$Payable to Palermo Incorporated$10,8000\mathrm{.}606,480$Interest Payable$3,0000\mathrm{.}601,80012\%$ Bonds Payable$100,0000\mathrm{.}6060,000$Premium on Bonds$5,7000\mathrm{.}603,420$Common Stock$90,0000\mathrm{.}7063,000$Retained Earnings$40,0000\mathrm{.}7028,000$Sales$579,0000\mathrm{.}65376,350$Total CreditsA$ $942,300$A$ $607,330$ Assume that the Australian dollar $($A$$)$ is the functional currency and that Palermo uses the fully adjusted equity method for accounting for its investment in Salina Ranching. A December $31,20$X$3,$ trial balance for Palermo Incorporated follows. Use this translated trial balance for completing this problem. ItemDebitCreditCash$ $38,000$Accounts Receivable $($net$)140,000$Receivable from Salina Ranching$6,480$Inventory$128,000$Plant and Equipment$500,000$Investment in Salina Ranching$152,064$Cost of Goods Sold$600,000$Depreciation Expense$28,000$Operating Expenses$204,000$Interest Expense$2,000$Dividends Declared$50,000$Translation Adjustment$22,528$Accumulated Depreciation$$$ $90,000$Accounts Payable$60,000$Interest Payable$2,000$Common Stock$500,000$Retained Earnings, January $1,20$X$3179,656$Sales$1,000,000$Income from Subsidiary$39,416$Total$ $1,871,072$$ $1,871,072$ Required: Prepare a set of consolidating entries, in general journal form, for the entries required to prepare a comprehensive consolidation worksheet $($including other comprehensive income$)$ as of December $31,20$X$3.$ Prepare a comprehensive consolidation worksheet as of December $31,20$X$3.3$repare a set of consolidating entries, in general journal form, for the entries required to prepare a comprehensive zonsolidation worksheet $($including other comprehensive income$)$ as of December $31,\backslash (20\backslash$times $3\backslash ).$

vote: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.