Blake Corporation acquired 100 percent of the voting shares of Shaw Corporation on January 1, \(20 \mathrm{X} 3\), at underlying book value. Blake uses the equity method in accounting for its investment in Shaw Corporation. Adjusted trial balances for Blake Corporation and Shaw Corporation on December \(31,20 \times 4\), are as follows:

\section*{Required}

a. Give all eliminating entries required on December \(31,20 \mathrm{X} 4\), to prepare consolidated financial statements.

b. Prepare a three-part consolidation workpaper as of December 31, 20X4.

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Blake Corporation Shaw Corporation Credit Item Debit Credit Debit Current Assets $210,000 $150.000 Depreciable Assets (net) 300.000 210.000 Investment in Shaw Corporation Stock 190,000 Depreciation Expense 25.000 15.000 Other Expenses 150,000 90.000 Dividends Declared 50,000 15,000 Current Liabilities Long-Term Debt $ 70.000 $ 50.000 100.000 120,000 Common Stock 200.000 100,000 Retained Earnings 290.000 70.000 Sales 230.000 140,000 Income from Subsidiary 35.000 $925,000 $925,000 $480.000 $480.000