Craft Corporation held 80 percent of the outstanding common shares of Delta Corporation on December 31. 20X2. Balance sheets for the two companies on that date were as follows:

On January 1. 20X3, Delta Corporation issued 4.000 additional shares of its \(\$ 10\) par value common stock to Nonaffiliated Corporation for \(\$ 45\) per share. The change in the book value of the Delta Corporation shares held by Craft Corporation was recorded by Craft as an adjustment to its investment in Delta and to its additional paid-in capital.
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a. Give the workpaper elimination entry needed in preparing a consolidated balance sheet as of January 1, 20X3, immediately following the sale of shares by Delta Corporation.

b. Prepare a consolidated balance sheet workpaper as of the close of business on January 1, 20X3.

c. Prepare a consolidated balance sheet as of the close of business on January 1, 20X3.

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Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Investment in Delta Corporation Total Assets Craft Corporation Balance Sheet December 31, 20X2 $ 50.000 Accounts Payable $ 70,000 90.000 Mortgages Payable 250,000 180.000 Common Stock 300,000 700.000 Additional Paid-In Capital 180.000 (200.000) Retained Earnings 500.000 480.000 $1.300,000 Total Liabilities and Equities $1.300.000