Block Corporation was created on January 1, 20X0, to develop computer software. On January 1, 20X5, Foster Company acquired 90 percent of Block's common stock at its underlying book value. At that date, the fair value of the noncontrolling interest was equal to 10 percent of the book value of Block Corporation. Trial balances for Foster and Block on December 31, 20X9, follow:

On January 1, 20X7, Block sold equipment to Foster for $48,000. Block had purchased the equipment for $90,000 on January 1, 20X5, and was depreciating it on a straight-line basis with a 10-year expected life and no anticipated scrap value. The equipment's total expected life is unchanged as a result of the intercompany sale. Assume Foster uses the fully adjusted equity method.

Required
a. Give all elimination entries required to prepare a three-part consolidated working paper at December 31, 20X9.
b. Prepare a three-part worksheet for 20X9 in goodform.

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Block Corporation Credit Foster Company 2 Credit Buildings & Equipment Investment in Block Corporation Accumulated Depreciation 2 2 Additional Paid-in Capital 5 Income from Subsidiany $1,891,500 1,891,500 $932,400 $932,400