Bennett Corporation owns 60 percent of the stock of Stone Container Company, which it acquired at book value in 20X1. At that date, the fair value of the noncontrolling interest was equal to 40 percent of Stone's book value. On December 31, 20X3, Bennett purchased $100,000 par value bonds of Stone for $107,000. Stone originally issued the 10-year bonds at par value on January 1, 20X1. The bonds' coupon rate is 9 percent. Interest is paid semiannually on June 30 and December 31. Trial balances for the two companies on December 31, 20X4, are as follows:

All interest income recognized by Bennett is related to its investment in Stone bonds.

Required
a. Prepare a consolidation worksheet for 20X4 in good form.
b. Prepare a consolidated balance sheet, income statement, and retained earnings statement for20X4.

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Bennett Corporation Stone Container Company Item Debit Credit Debit Credit Cash Accounts Receivable Inventory Other Assets Investment in Stone Container Bonds Investment in Stone Container Stock Interest Expense Other Expenses Dividends Declared Accounts Payable Bonds Payable Common Stock Retained Earnings Sales Interest Income Income from Stone Container Co Total $61,600 100,000 120,000 340,000 106,212 122,273 20,000 $ 368,600 40,000 20,000 80,000 110,000 250,000 2 18,000 $182,000 10,000 $ 80,000 200,000 300,000 210,000 450,000 8,212 30,473 50,000 200,000 100,000 70,000 250,000 $1,278,685 $1,278,685 $670,000 $670,000