Bell Company purchased 60 percent ownership of Troll Corporation on January 1, 20X1, for $82,800. On that date, the noncontrolling interest had a fair value of $55,200 and Troll reported common stock outstanding of $100,000 and retained earnings of $20,000. The full amount of the differential is assigned to land to be used as a future building site. Bell uses the fully adjusted equity method in accounting for its ownership of Troll. On December 31, 20X2, the trial balances of the two companies are as follows:

Troll sold inventory costing $25,500 to Bell for $42,500 in 20X1. Bell resold 80 percent of the purchase in 20X1 and the remainder in 20X2. Troll sold inventory costing $21,000 to Bell in 20X2 for $35,000, and Bell resold 70 percent of it prior to December 31, 20X2. In addition, Bell sold inventory costing $14,000 to Troll for $28,000 in 20X2, and Troll resold all but $13,000 of its purchase prior to December 31, 20X2.
Assume both companies use straight-line depreciation and that no property, plant, and equipment has been purchased since the acquisition.

Required
a. Record the journal entry or entries for 20X2 on Bell's books related to its investment in Troll Corporation, using the equity method.
b. Prepare the elimination entries needed to complete a consolidated worksheet for 20X2.
c. Prepare a three-part consolidation worksheet for20X2.

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Bell Company Troll Corporation Credit Credit Cash and Accounts Receivable Buildings & Equipment Investment in Troll Corporation Stock Cost of Goods Sold 3 103,780 Accumulated Depreciation 4 1 Retained Earnings 2 0 Income from Subsidiary 5963,980 $963,980 $586,200 $586,200