Emerald Corporation acquired 10,500 shares of the common stock and 800 shares of the 8 percent preferred stock of Pert Company on December 31, 20X4, at underlying book value. At that date, the fair value of the noncontrolling interest in Pert's common stock was equal to 30 percent of the book value of its common stock. Pert reported the following balance sheet amounts on January 1, 20X5:

Pert's preferred stock is $100 par value, and its common stock is $10 par value. The preferred dividends are cumulative and are two years in arrears on January 1, 20X5. Pert reports net income of $34,000 for 20X5 and pays no dividends.

Required
a. Present the worksheet elimination entries needed to prepare a consolidated balance sheet on January 1, 20X5.
b. Assuming that Emerald reported income from its separate operations of $80,000 in 20X5, compute the amount of consolidated net income and the amount of income to be assigned to the controlling shareholders in the 20X5 consolidated incomestatement.

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Cash Accounts Receivable Inventory Buildings & Equipment Less: Accumulated Depreciation 50000) Retained Earnings Total Assets $30,000 Accounts Payable 70,000 Bonds Payable 120,000 Preferred Stock 600,000 Common Stock $20,000 100,000 200,000 150,000 200,000 $670,000 Total Liabilities & Equities 670,000