Mist Company purchased 65 percent of the voting common stock of Blank Corporation on June 20, 20X2, at underlying book value. The balance sheets and income statements for the companies at December \(31,20 \times 4\), are as follows:

1. Mist Company uses the basic equity method in accounting for its investment in Blank Corporation.
2. During 20X4, Mist charged Blank \(\$ 24,000\) for consulting services to Blank during \(20 \mathrm{X} 4\). The services cost Mist \(\$ 17,000\).
3. On January 1, 20X4, Blank sold a building to Mist for \(\$ 13,200\) above its carrying value on Blank's books. The building had a remaining economic life of 12 years at the time of transfer.
4. On June 14, 20X4, Mist sold land it purchased for \(\$ 3,000\) to Blank for \(\$ 7,000\). Blank continued to hold the land at December 31, 20X4.
Required

a. Give all eliminating entries needed to prepare a full set of consolidated financial statements for 20X4.

b. Prepare a consolidation workpaper for \(20 \mathrm{X} 4\).

c. Prepare the \(20 \times 4\) consolidated balance sheet, income statement, and retained earnings statement.

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Item Mist Company and Blank Corporation Balance Sheets December 31, 20X4 Mist Company $ 32,500 62,000 95.000 Blank Corp. $ 22,000 Cash Accounts Receivable Inventory Land Buildings, and Equipment (net) Investment in Blank Corp. Stock Total Assets 37,000 71,000 40.000 15,000 200.000 125,000 110,500 $540,000 $270,000 $ 35,000 Accounts Payable Bonds Payable Common Stock, $5 par value Retained Earnings 180.000 100,000 225,000 $ 20,000 80,000 60,000 110,000 Total Liabilities and Stockholders' Equity $540,000 $270,000