Farmstead Company reported the following summarized balance sheet data on December 31, 20X8:

On January I, 20X9, Horrigan Corporation purchased 70 percent of the stock of Farmstead Company for \(\$ 210,000\). Farmstead Company reported net income of \(\$ 20,000\) for \(20 \mathrm{X} 9\) and paid dividends of \(\$ 5,000\).
\section*{Required}

a. Give the equity-method journal entries recorded by Horrigan Corporation on its books during 20X9 related to its ownership of Farmstead Company.

b. Give the eliminating entries needed on December \(31,20 \times 9\), to prepare consolidated financial statements.

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Assets $350,000 Accounts Payable $ 50.000 Common Stock 100,000 Retained Earnings Total $350,000 Total 200.000 $350,000