Norgaard Corporation is provided with management consulting services by its 75 percent owned subsidiary. Bline Inc. During 20X3, Bline billed Norgaard \(\$ 123,200\) for the services provided. For the year 20X4. Bline billed Norgaard \(\$ 138,700\) for such services and collected all but \(\$ 6,600\) by year-end. Bline's labor cost and other associated costs for the employees providing services to Norgaard totaled \(\$ 91,000\) in \(20 \times 3\) and \(\$ 112,000\) in 20X4. Norgaard reported \(\$ 2,342,000\) of income from its own separate operations for \(20 \mathrm{X} 4\), and Bline reported net income of \(\$ 631,000\).

\section*{Required}

a. Present all elimination entries related to the intercompany sale of services that would be needed in the consolidation workpaper used to prepare a complete set of consolidated financial statements for \(20 \mathrm{X} 4\).

b. Compute consolidated net income for \(20 \mathrm{X} 4\).