Bath Corporation acquired 80 percent of Stang Brewing Company's stock on January 1, 20X1, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 20 percent of Stang's book value. On January 1, 20X1, Stang issued $300,000 par value, 8 percent, 10-year bonds to Sidney Malt Company. Bath subsequently purchased $100,000 of the bonds from Sidney Malt for $102,000 on January 1, 20X3. Interest is paid semiannually on January 1 and July 1. Assume Bath Corporation uses the fully adjusted equity method.

Summarized balance sheets for Bath and Stang as of December 31, 20X4, follow:

At December 31, 20X4, Stang holds $42,000 of inventory purchased from Bath, and Bath holds $26,000 of inventory purchased from Stang. Stang and Bath sell at cost plus markups of 30 percent and 40 percent, respectively. Assume total sales from Bath to Stang were $10,000 and from Stang to Bath were $50,000.

Required
a. Prepare all elimination entries needed on December 31, 20X4, to complete a consolidated balance sheet worksheet. Assume Stang earned $75,000 and paid $100,000 in dividends during the year.
b. Prepare a consolidated balance sheet worksheet.
c. Prepare a consolidated balance sheet in goodform.

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BATH CORPORATION Balance Sheet December 31, 20X4 Cash & Receivables Inventory Buildings & Equipment (net) Investment in Stang Brewing: $122,500 Accounts Payable 40,000 400,000 200,000 311,600 200,000 Bonds Payable 320,000 Common Stock Retained Earnings Bonds Stock Total Assets 101,500 207,600 5951.600 Total Liabilities & Owners' Equity 951,600 STANG BREWING COMPANY Balance Sheet December 31, 20X4 Cash & Receivables Inventory Buildings & Equipment (net) $124,000 Accounts Payable 28,000 300,000 36,000 100,000 170,000 150,000 Bonds Payable 360,000 Bond Premium Common Stock Retained Earnings Total Assets $634,000 Total Liabilities & Owners' Equity $634,000