Part G got cut off It should read Record the entry to adjust Accumulated Depreciation

Prime Company holds 80 percent of Suspect Company's stock, acquired on January 1, 20X 2 , for $174,000. On the acquisltion date, the falr value of the noncontrolling Interest was $43,500. Suspect reported retained earnings of $50,000 and had $100,000 of common stock outstanding. Prime uses the fully adjusted equity method in accounting for its Investment in Suspect. Trlal balance data for the two companles on December 31,206, are as follows: Additional Information 1. At the date of combination, the book values and falr values of all separately identfiable assets and llabilitles of Suspect were the same. At December 31,206, the management of Prime revlewed the amount attributed to goodwll as a result of its purchase of Suspect stock and concluded an Impalrment loss of $19.575 should be recognized in 206 and shared proportlonately between the controlling and noncontrolling shareholders. 2. On January 1, 20X5. Suspect sold land that had cost $9,000 to Prime for $20,250. 3. On January 1, 20X6, Prime sold to Suspect equipment that it had purchased for $90,000 on January 1, 20X1. The equipment has a total economic life of 15 years and was sold to Suspect for $74,500. Both companies use straight-Iine depreclation. 4. There was $4,500 of Intercompany recelvables and payables on December 31,206. Required: a. Give all consolidation entrles needed to prepare a consolidation worksheet for 206. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 3. On January 1, 20X6. Prime sold to Suspect equipment that it had purchased for $90,000 on January 1, 20X1. The equipment has a total economic life of 15 years and was sold to Suspect for $74,500. Both companies use straight-Iine depreclation. 4. There was $4,500 of Intercompany recelvables and payables on December 31,206. Required: a. Give all consolidation entries needed to prepare a consolidation worksheet for 206. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) A Record the basic consolidation entry. a Record the amortized excess value reclassification entry. c Record the excess value (differential) reclassification entry. D Record the entry to eliminate the intercompany receivable/payable. E Record the entry to eliminate the gain on the sale of land. F Record the entry to eliminate the gain on the equipment and to correct the asset's basis. Note : = journal entry has been entered b. Prepare a three-part worksheet for 206. (Values in the first two columns (the "parent" and "subsidlary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entrles" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly. combine all credit entrles into one amount and enter this amount in the credit column of the worksheet.) b. Prepare a three-part worksheet for 206. (Values In the first two columns (the "parent" and "subsidlary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entrles" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly. combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) c. Prepare a consolidated balance sheet, Income statement, and retained earnings statement for 20X6. (Be sure to list the assets and liabilitles in order of their liquidity. Amount to be deducted should be indicated by a minus slgn.) \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ PRIME COMPANY AND SUBSIDIARY } \\ \hline \multicolumn{2}{|c|}{ Consolidated Income Statement } \\ \hline \multicolumn{2}{|c|}{ Year Ended December 31, 20X6 } \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total expenses & & \\ \hline Consolidated net income & & \\ \hline & & \\ \hline Income to Controling & & $ \\ \hline \end{tabular} Prime Company holds 80 percent of Suspect Company's stock, acquired on January 1, 20X 2 , for $174,000. On the acquisltion date, the falr value of the noncontrolling Interest was $43,500. Suspect reported retained earnings of $50,000 and had $100,000 of common stock outstanding. Prime uses the fully adjusted equity method in accounting for its Investment in Suspect. Trlal balance data for the two companles on December 31,206, are as follows: Additional Information 1. At the date of combination, the book values and falr values of all separately identfiable assets and llabilitles of Suspect were the same. At December 31,206, the management of Prime revlewed the amount attributed to goodwll as a result of its purchase of Suspect stock and concluded an Impalrment loss of $19.575 should be recognized in 206 and shared proportlonately between the controlling and noncontrolling shareholders. 2. On January 1, 20X5. Suspect sold land that had cost $9,000 to Prime for $20,250. 3. On January 1, 20X6, Prime sold to Suspect equipment that it had purchased for $90,000 on January 1, 20X1. The equipment has a total economic life of 15 years and was sold to Suspect for $74,500. Both companies use straight-Iine depreclation. 4. There was $4,500 of Intercompany recelvables and payables on December 31,206. Required: a. Give all consolidation entrles needed to prepare a consolidation worksheet for 206. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 3. On January 1, 20X6. Prime sold to Suspect equipment that it had purchased for $90,000 on January 1, 20X1. The equipment has a total economic life of 15 years and was sold to Suspect for $74,500. Both companies use straight-Iine depreclation. 4. There was $4,500 of Intercompany recelvables and payables on December 31,206. Required: a. Give all consolidation entries needed to prepare a consolidation worksheet for 206. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) A Record the basic consolidation entry. a Record the amortized excess value reclassification entry. c Record the excess value (differential) reclassification entry. D Record the entry to eliminate the intercompany receivable/payable. E Record the entry to eliminate the gain on the sale of land. F Record the entry to eliminate the gain on the equipment and to correct the asset's basis. Note : = journal entry has been entered b. Prepare a three-part worksheet for 206. (Values in the first two columns (the "parent" and "subsidlary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entrles" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly. combine all credit entrles into one amount and enter this amount in the credit column of the worksheet.) b. Prepare a three-part worksheet for 206. (Values In the first two columns (the "parent" and "subsidlary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entrles" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly. combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) c. Prepare a consolidated balance sheet, Income statement, and retained earnings statement for 20X6. (Be sure to list the assets and liabilitles in order of their liquidity. Amount to be deducted should be indicated by a minus slgn.) \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ PRIME COMPANY AND SUBSIDIARY } \\ \hline \multicolumn{2}{|c|}{ Consolidated Income Statement } \\ \hline \multicolumn{2}{|c|}{ Year Ended December 31, 20X6 } \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total expenses & & \\ \hline Consolidated net income & & \\ \hline & & \\ \hline Income to Controling & & $ \\ \hline \end{tabular}