Bath Corporation purchased 80 percent of the stock of Stang Brewing Company on January 1, 20X1, at underlying book value. On that date, Stang Brewing Company issued \(\$ 300,000\) par value, 8 percent. 10 -year bonds to Sidney Malt Company. Bath Corporation 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.
Summarized balance sheets for Bath Corporation and Stang Brewing Company as of December \(31,20 \times 4\), are as follows:

At December 31, 20X4, Stang Brewing holds \(\$ 42,000\) of inventory purchased from Bath Corporation and Bath holds \(\$ 26,000\) of inventory purchased from Stang Brewing. Stang Brewing and Bath sell at cost plus markups of 30 percent and 40 percent, respectively.
\section*{Required}

a. Prepare all elimination entries needed on December \(31,20 \mathrm{X} 4\), to complete a consolidation balance sheet workpaper.

b. Prepare a consolidated balance sheet workpaper.

c. Prepare a consolidated balance sheet in good form.

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Cash and Receivables $122,500 Inventory 200,000 Bonds Payable Bath Corporation Balance Sheet December 31, 20X4 Accounts Payable $ 40,000 400,000 Buildings and Equipment (net) 320,000 Common Stock Investment in Stang Brewing: Retained Earnings 200.000 320,000 Bonds 101.500 Stock Total Assets 216.000 $960.000 Total Liabilities and Owners' Equity $960,000